Lanco Infratech’s assets on sale include 35 MW each of solar power assets in Rajasthan and Gujarat, and 3 MW of wind power assets in Karnataka
Mumbai: Lanco Infratech Ltd, which is undergoing insolvency proceedings, is planning to sell 73 megawatt (MW) of four renewables assets and sought bids from interested buyers.
In a newspaper advertisement, Savan Godiawala, interim insolvency professional in charge of the company, said that indicative time for singing confidentiality undertaking is 15 December for potential bidders who are keen to offer bids for either full or part of the assets.
The assets on sale include 35 MW each of solar assets in Rajasthan and Gujarat, and 3 MW of wind assets in Karnataka. These assets are owned directly by Lanco Infratech or indirectly through special purpose vehicle.
Lanco Infratech was among the 12 NPA accounts referred to the National Company Law Tribunal (NCLT) by the Reserve Bank of India (RBI). Following the central bank’s directive, IDBI Bank, one of the lenders to the company, had filed a petition which was accepted on 7 August.
Upon admission of the petition, a six-month moratorium begins to decide on a resolution plan in accordance with the Insolvency and Bankruptcy Code, 2016 (IBC). During this period, the board is suspended, an interim resolution professional takes charge and existing proceedings against the defaulter are suspended. This moratorium can be extended up to 270 days.
The claims of 29 financial creditors stand at Rs45,263 crore, information on company’s website showed. With claims of around Rs7,380 crore, ICICI Bank tops the list, followed by IDBI Bank, which has claimed dues of Rs3,608 crore.
These 29 lenders are part of the committee of creditors (CoC), which has the right to approve or reject the any binding offer presented to them.
On 23 November, President Ram Nath Kovind gave his assent to an ordinance amending the IBC. The ordinance bars not only wilful defaulters, but also several other categories such as guarantors to the debtor, those with loans classified as non-performing assets (NPAs) for at least a year, those convicted for any offence with a prison term of more than two years, directors in companies that are disqualified, entities barred by the capital markets regulator, those who have been found to have struck fraudulent transactions with the firm, and connected entities.
On Tuesday, Lanco Infratech shares fell 3.26% to Rs0.89 on the BSE while the benchmark Sensex shed 0.20% to end the day at 32,802.44 points.