Lanco's CDR bankers seek more information

Last Updated: Sun, Oct 06, 2013 22:30 hrs

Lanco Infratech's Rs 7,500-crore corporate debt restructuring (CDR) proposal could be delayed by a few more months, with its bankers seeking additional information.

The bankers working on the CDR proposal have asked for the financial details of the group companies. One among these is Griffin Coal, an Australian coal mine which Lanco acquired in 2011. The details of the group's real estate company, Lanco Hills, which has assets in Hyderabad, were also sought. Recently, Lanco settled a long-pending $3.5-billion (Rs 20,300-crore) lawsuit regarding their Australian coal mine, with Perdaman Chemicals.

"We have asked the lenders to look at the group as a whole when the company is referred for debt recast under CDR. A package for one at times impacts the lenders' obligation to financing and business relationship for other group companies. The purpose is to avoid any problems," said a top official in the CDR cell, the coordinating arm for lenders forum.

The bankers want to avoid any stress that could come on the business that is referred to CDR, from other group companies which may be bogged down with their own repayment obligations. "The lenders to other group companies are not necessarily the same as the ones of its power business. We want to avoid any confusion," said a banker associated with the company's CDR.

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