Lanco Infratech and lessons from a failed group resolution of troubled debt

The firm fundamentally has no assets, say experts. Ten of its subsidiaries are under corporate insolvency, most holding either a single or a group of road or power assets

Hyderabad-headquartered and now in liquidation, Lanco Infratech was created in 2006 to consolidate the 1960-founded Lanco Group’s diverse operations under one brand. Twelve years later, the same consolidation model resulted in a failed resolution and liquidation for the company.

A resolution for Lanco Infratech, an engineering, procurement and construction (EPC) company that held stakes in various Lanco assets, was attempted in 2017. A year later, the attempt failed, making it a case study on the complexities around resolving debt for an infrastructure and power conglomerate in India -- despite the new Insolvency and Bankruptcy Code, 2016

“What hit the resolution