Lanco gets lenders' nod to rejig over Rs 7,000 crore debt

Priority loans to the tune of more than Rs 2,500 crore will help in improving the EPC operations in different segments

In a major relief, diversified Lanco Infratech has received approval to restructure debt worth more than Rs 7,000 crore.

The entity, which has interests in various infrastructure segments, would get over Rs 2,500-crore priority loans from its lenders, a senior company official said.

Under the Corporate Debt Restructuring (CDR) plan, more than Rs 7,000 crore would be re-jigged by the company. There would be moratorium on interest payments for fund-based facilities, which would be in place for two years, the official told PTI.

The priority loans to the tune of more than Rs 2,500 crore would help in improving the EPC (Engineering, Procurement and Construction) operations in different segments. Also, the pending dues of vendors, among others, can be cleared, he said.

Meanwhile, in a regulatory filing today, the company said the Corporate Debt Restructuring Empowered Group (CDR EG) has approved its rejig proposal.

"The CDR EG approved the CDR proposal at its meeting held on December 11, 2013," the filing said.

Lanco Infratech's board of directors, during their meeting today, accepted the Letter of Approval issued by the CDR EG on December 20.

The CDR plan is only for Lanco Infratech and excludes the group firms, the official said.

Lanco Infratech has been grappling with tough business conditions and overall sluggishness in the infrastructure sector.