Lanco Infratech nears deal for INR7,500 crore corporate debt restructuring
India's Lanco Infratech Ltd. is reportedly in the process of signing one of the country's largest corporate debt restructuring deals. The said deal will allow the debt-stricken infrastructure developer to reschedule repayment of as much as INR7,500 crore and give it access to new credit of INR3,500 crore.
Economic Times, quoting Lanco Infratech's Amardeep Jaiswal, said the company and a consortium of over 25 lenders led by Mumbai-based IDBI Bank Ltd. on Friday met in Gurgaon to work out the details of the deal. Jaiswal is Lanco Infratech's legal affairs head.
The report, citing a Lanco Infratech executive, said the lender consortium will forgo a little over INR400 crore of interest due from the Indian infrastructure developer. Of the new credit, INR2,500 crore will be used for priority loans and the rest for working capital, the executive added.
As part of the plan, Lanco Infratech's promoters will reportedly exit from their stakes in some projects and companies. They are also expected to bring in fresh funds of about INR500 crore, Economic Times said.
Lanco Infratech's debt burden is estimated to be close to INR37,500 crore, the report said.