Lanco Infratech Ltd, which is facing insolvency proceedings, on Thursday said the Resolution Professional appointed by National Company Law Tribunal will approach the Hyderabad Bench of NCLT seeking approval for the company's liquidation or any other direction. The company said this, in a regulatory filing to the stock exchange, stating that a resolution plan submitted by Thriveni Earthmovers Private Ltd, a Tamil Nadu mining and infrastructure firm, could not get the approval of the committee of creditors (CoC).
The Resolution Professional appointed for Lanco Infratech had presented the resolution plan for the approval of the CoC, in accordance with the Insolvency and Bankruptcy Code, 2016. On account of less than 75% of the votes being cast in favour, the approval of the CoC could not be obtained.
Since the corporate insolvency resolution period expires on May 4, 2018, the necessary application is being filed by the Resolution Professional with NCLT, Hyderabad Bench, for liquidation of the company or for any other direction which NCLT may deem fit on account of the revised proposal dated May 1, 2018 submitted by Thriveni Earthmovers Private Limited.
ADVERTISEMENT
The RBI had in June directed IDBI Bank, lead lender of Lanco Infratech, to initiate insolvency proceedings for the company under the Insolvency and Bankruptcy Code (IBC). The company, among 12 firms identified by the RBI with high debt for proceedings under IBC, owes over ₹44,000 crore to the IDBI Bank-led consortium.
The NCLT had in August 7 suspended the powers of the company board and appointed Savan Godiawala as Interim Resolution professional as part of the Corporate Insolvency Resolution Process (CIRP) for the firm.
An official of Lanco told PTI since Thriveni submitted an enhanced bid on the last date, the CoC did not have time to go through it in detail and hence “decided” to seek NCLT’s direction. The extended deadline of 270 days to come up with a resolution ends on Friday, he said.
ADVERTISEMENT
ADVERTISEMENT