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Lanco makes last-ditch effort to avoid strategic debt restructuring
Friday, July 22, 2016 | News Source: business-standard.com | Company: Lanco
  

The management of Lanco Infratech is making last-ditch effort to raise additional equity and funds to avoid strategic debt restructuring (SDR), under which the lenders will take over the company and sell it off. The SDR kicks in when an entity fails to show recovery despite getting relief in loan repayment terms through corporate debt restructuring(CDR).

In 2014, the lenders had approved a CDR scheme of about Rs 4,400 crore to help the company reduce its debt. However, it reported a consolidated debt of about Rs 42,330 crore as on March 2016.



"All the efforts have been directed at making Lanco Infratech debt-free at the holding company level. For this, we need money which the management is trying to secure by pursuing all available options, including sale of assets and bringing strategic investor into the power vertical among other things," a company official said on condition of anonymity.








Original News Link :-http://www.business-standard.com/article/companies/lanco-makes-last-ditch-effort-to-avoid-strategic-debt-restructuring-116072200029_1.html





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