Companies

NCLT orders liquidation of Lanco Infratech

V Rishi Kumar Hyderabad | Updated on August 27, 2018 Published on August 27, 2018

Appoints IRP as official liquidator; says firm no to deadline extension

The National Company Law Tribunal, Hyderabad, has ordered liquidation proceedings for Lanco Infratech Ltd. The NCLT Bench dismissed a petition filed by Power Mech Projects Ltd to consider a deadline extension to place a bid for Lanco Infratech.

Ordering the appointment of Insolvency Resolution Professional (IRP) Savan Godiawala as the official liquidator, NCLT Member Ratakonda Murali accorded 75 days’ time for the liquidation process.

The diversified infrastructure company was taken to NCLT by IDBI, and the IRP had called for a resolution plan by potential bidders.

In the first attempt, Thriveni Earthmovers’ bid, the only comprehensive one, was considered. However, it was rejected by the Committee of Creditors (CoC) with barely 15 per cent voting in favour of the bid.

Second offer

Later, Thriveni made another offer after taking the NCLT’s permission, but that, too, was rejected.

Subsequently, Power Mech Projects, an EPC player that had initially filed an expression of interest, filed a petition seeking more time to make a resolution plan while also citing some changes in the insolvency proceeding process.

However, the NCLT dismissed the petition today and ordered the liquidation of the company.

Lanco Infratech has piled up debt of ₹47,000 crore. It was amongst the leading infrastructure companies with a diversified portfolio of projects in the power, roads, realty and coal sectors apart from being a major EPC player.

Published on August 27, 2018
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