Lanco discusses restructuring of US$1.5 billion debt
Lanco Infratech Ltd announced that they have started discussion with bankers regarding the restructuring of the company's debt worth INR90 billion or US$1.5 billion. Once the process is approved by prospective lenders, Lanco Infratech Ltd will be the second Indian company that will undergo a major restructuring since the previous year. Last November, Suzlon Energy went through debt restructuring for INR110 billion worth of debt.
Lanco is currently looking at options to restructure part of the company's debt after its failed attempts to sell some of its assets. The Indian infrastructure builder acquired Australia's Griffin Coal Mining Co in 2011 for US$760 million. The company is now exploring options regarding the business. At the end of March, Lanco reported debts that amounted to INR336 billion.
"We told the company that something needed to be done about the huge debt, as it had exhausted all its options," a senior state-run bank official was quoted saying about the possible Lanco restructuring.