MUMBAI: LANCO Infratech on Thursday said the company was heading for liquidation as lenders did not approve the resolution plan bidders had submitted. Lanco was one of the first 12 stressed assets referred for insolvency resolution by the central bank in June last year and owes over Rs 50,000 crore.
The company was first referred to the National Company Law Tribunal (NCLT) in August 2017 and the insolvency resolution process deadline expires on May 4. Last week, the Committee of Ceditors led by ICICI Bank rejected all the bids submitted as part of the resolution process.
The highest bidder—Thriveni Earthmovers, an iron ore mine developer—offered Rs 1,400 crore in cash and liability of Rs 38,000 crore of debt at the subsidiary level, according to reports.
It may be noted that Thriveni had submitted a revised proposal just a couple of days ago, but it remains to be seen if the lenders will seek relaxation of the deadline from the tribunal, considering the fact that the current deadline expires on Friday.
However, lenders have rejected the bid and the infrastructure firm is now headed for liquidation.
“On account of less than 75 per cent of the votes being cast in favour, the aforementioned 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 the NCLT, Hyderabad bench, for liquidation of the company, or for any other direction which the NCLT may deem fit on account of the revised proposal dated May 1, 2018, submitted by Thriveni Earthmovers Private Ltd,” Lanco said in a disclosure with the exchanges.