Lanco Infratech has received Corporate Debt Restructuring Empowered Group’s approval to restructure debt worth more than Rs.7,000 crore.
The company would get over Rs.2,500-crore priority loans from its lenders, a senior company official said.
Under the corporate debt restructuring plan, more than Rs.7,000 crore would be re-jigged by the company. There would be a moratorium on interest payments for fund-based facilities, which would be in place for two years, the official told PTI.
The priority loans to the tune of more than Rs 2,500 crore would help in improving the EPC (engineering, procurement and construction) operations in different segments. Also, the pending dues of vendors, among others, could be cleared, he said.
Meanwhile, in a regulatory filing, the company said the Corporate Debt Restructuring Empowered Group (CDR EG) had approved its re-jig proposal.
“The CDR EG approved the CDR proposal at its meeting held on December 11, 2013,” the filing said. Lanco Infratech’s board of directors, during their meeting on Monday, accepted the Letter of Approval issued by the CDR EG on December 20.