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The progress of resolution process of the debt-strapped Lanco Infrastructure now hangs in the balance with the crucial meeting of Committee of Creditors slated for later this week.
It could either result in a resolution as the process was initiated by the bankers or end up being taken as a case for liquidation.
A consortium of about 30 bankers headed by IDBI Bank, who form the Committee of Creditors, will be meeting later this week to consider the proposal of Thriveni Earthmovers, a mining company, for resolution, or if not satisfied, may recommend liquidation.
According to sources close to the development, the Committee which had met earlier this month, in a majority, decided against the proposal made by Thriveni Earthmovers.
Sources said that the Lanco Infra matter, which is now being under consideration by the National Company Law Tribunal, on the basis of a petition initiated by IDBI as a lead creditor, relates to a debt of about ₹11,000 crore of the infrastructure company's holding company level and another debt component of ₹36,000 crore, which includes its special purpose vehicles.
Lanco Infra is one of the 12 financially stressed assets which have been referred under the Insolvency and Bankruptcy Code by the Reserve Bank of India, for possible resolution.
The extended deadline of 270 days to come up with a resolution, ends this week and the meeting of the Committee of Creditors will hold the key in finding a way out. However, the final decision rests with the Tribunal.
While there are several other companies, investors in fray with their proposals for Lanco assets, which include Divya Shree Developers, Cube Highways, and couple of US companies, including an asset management company, the proposal of Thriveni was actively under discussion for evaluating if this would work out.
With majority of the creditors rejecting this bid, the infrastructure company faces the prospect of liquidation.
That means, the process of divestment of assets would again be taken up in a different approach, which could mean several projects at one go or divestment in a project by project manner, sources said.
The infra company assets include, coal-fired thermal and gas-based power projects, highways, renewable energy and hydel projects and real estate ventures.
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