Lanco Infratech Ltd. is headed for liquidation after lenders rejected the highest offer made by Thriveni Earthmovers Pvt Ltd. under the insolvency code.
The company’s resolution professional will file an application at the National Company Law Tribunal for liquidation or “any other direction the Hon’ble NCLT may deem fit”, Lanco Infratech said in an exchange filing. Its insolvency resolution period is set to expire on May 4.
The resolution plan submitted by Thriveni Earthmovers was assessed by the committee of creditors but failed to receive the necessary 75 percent votes, the filing added. Thriveni had submitted its revised proposal on May 1.
ICICI Bank and IDBI Bank are the two largest lenders to the company. According to the details released by resolution professional Savan Godiawala, the Hyderabad-based engineering, procurement and construction company owes its finanical creditors more than Rs 45,000 crore.
The financial creditors’ claims include the guarantees that Lanco Infratech had issued for its subsidiaries, two people directly involved with the insolvency proceedings confirmed.
According to the second person quoted above, Thriveni Earthmovers had proposed to pay Rs 1,500 crore for Lanco Infratech and continue servicing the debt of the subsidiaries. The liquidation value for the entire unit – including the subsidiaries – was at Rs 1,400 crore, the person said.
Lanco Infratech features in the list of 12 large companies which were shortlisted for immediate insolvency proceedings in June 2017 by the Reserve Bank of India.