Lanco Infratech on Saturday announced its decision to restructure Rs.7,500 crore worth of debt.
A statement issued here by the Senior Vice-President of the company, A. Narasimhan, said the debt recast consists of Rs.3,200 crore of fund-based borrowings such as short-term loans and Rs.4,300 crore of non-fund-based debt such as bank guarantees.
The company in a regulatory filing with the National Stock Exchange said Lanco Infratech, the holding company of the group, had initiated the process of corporate debt restructuring (CDR) as per Reserve Bank of India guidelines. The CDR would be only for Lanco Infratech and not for any of its subsidiaries.
Lanco group’s net debt touched Rs.33,593.5 crore at the end of March 2013. “Prevailing economic conditions have adversely impacted the performance of the infrastructure sector and more specifically, the power sector. Pending dues from discoms are close to Rs.3,000 crore. Besides, there are problems due to inadequate fuel supplies and rupee depreciation, among others,” the statement said.
CDR is a mechanism that allows viable companies additional time to meet debt obligations, the company said in the filing. The company’s loss in the year ended March 2013 widened to Rs.1,073.3 crore from Rs.112 crore a year earlier.
