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Last Updated : Dec 12, 2013 03:38 PM IST | Source: Moneycontrol.com

Lanco Infra up 2.5% after reports say banks approve CDR

A company executive was quoted as saying the approval of the debt restructuring would ease liquidity and help restart its stalled engineering, procurement and construction business.

 
 
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Shares in Lanco Infratech were up about 2.5% in early trade Thursday after media reports suggested a consortium of lenders has agreed to restructure about Rs 8,000 crore of debt-laden firm's liabilities.


Part of the L Madhusudan Rao-promoted Lanco Group, which is reeling under debt of about Rs 40,000 crore, the approval of the debt restructuring is likely to offer a lifeline to the firm, which operates in the highly capital-intensive power, construction and real-estate businesses.


Reports said the corporate debt restructuring (CDR) package will ease repayments for the company by offering a moratorium and will provide additional funds towards working capital. In lieu, the promoter has been asked to infuse some additional capital of his own.


The company posted a loss of Rs 581 crore in the September quarter and a company executive was quoted as saying the approval of the debt restructuring would ease the firm's liquidity position and help restart its stalled engineering, procurement and construction business.



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First Published on Dec 12, 2013 09:37 am
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