Lanco Infra gains as banks approve Rs 8,000 crore CDR

MUMBAI: Shares of Lanco Infratech moved higher in a weak market following reports that a consortium of 27 banks has agreed for restructuring of loans.

Bankers of Lanco Infratech have approved a proposal to restructure its Rs 8,000 crore debt, making it the biggest debt recast this quarter. The decision was taken at the corporate debt restructuring meeting held on Wednesday.

Lenders led by ICICI Bank have agreed to provide additional loan of Rs 3,500 crore to the cash strapped company. The additional loan includes Rs 2,500 crore of fund-based limits like working capital loan and Rs 1,000 crore of non-funds limits like letter of credit and guarantees.

Under the terms, promoter L Madhusudhan Rao will infuse Rs 200-300 crore as equity.

At 11:20 a.m.; the stock was at Rs 7.16, up 1.70 per cent, on the BSE. It touched a high of Rs 7.38 and a low of Rs 7.10 in trade today.