The results announcement of Lanco Infratech Ltd has been put off by the Insolvency Resolution Professional (IRP) as the company is faced with uncertainty and is battling insolvency proceedings, leading to liquidation in the National Company Law Tribunal (NCLT) in Hyderabad.

While the company faces a number of headwinds, with the proposal for its acquisition being rejected by majority of lenders, the Tamil Nadu Generation and Distribution Corporation Limited (Tangedco) has cancelled a ₹3,960-crore contract.

Lanco Infra was awarded a the EPC contract for construction of a 660 MW super critical Ennore thermal power station expansion project.

Financial woes

In view of the NCLT posting the matter for hearing on June 13, the IRP Savan Godiawala informed, “Due to significant uncertainty in reflecting the financial position of the Company during the pendency of the application, additional time was sought from the Securities and Exchange Board of India for finalisation and submission of Annual Audited Financial Results and related disclosures for the Financial Year ending March 31, 2018.”

Board meet postponed

Consequently, the board meeting scheduled on May 28, 2018 is being postponed and shall be re-convened on the basis of the outcome of the liquidation application filed on May 3 with the NCLT.

The diversified infrastructure company is now faced with an uphill task of getting back to normality as it has piled up a huge debt of over ₹45,000 crore. The decision on insolvency may be finalised in June.

The Committee of Creditors, by a majority vote of 75, rejected the resolution plan submitted by Thriveni Earthmovers, leading to the IRP moving liquidation proceedings.

Meanwhile, Achanta Veerendra Kumar has submitted his resignation as ‘Company Secretary and Compliance Officer’ and ‘Whole-time Key Managerial Person’. He will be relieved of his duties on June 15.

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