Lanco Infratech begins process to restructure INR 75 billion (USD 1.3 billion) debt
Engineering procurement and construction company Lanco Infratech Ltd. began the process of restructuring its debt amounting to INR 75 billion (USD 1.3). Based in India, Lanco's woes started when the country's slowed economic growth hit its power, engineering, and construction businesses. The company has started discussing the debt restructuring plan with its bankers. If approved, it would be the second company in only nine months to apply for a restructuring of its loan. Suzlon Energy, a maker of wind turbines, was the first.
In 2011, Lanco acquired Australia's Griffin Coal Mining Co for USD 760 million. The company, however, clarified that should the debt restructuring happen, it would affect Lanco Infratech alone, and not its other units. Its Australian acquisition would not be included in the restructuring. The company expects the "current adverse macro-economic situation" to continue for the next 18 to 24 months. The debt restructuring process will enable Lanco to finish its projects on schedule despite the weakened economy.