Lanco Infratech rallies 3% on lenders' nod to rejig over Rs 7,000 cr debt

NEW DELHI: Lanco Infratech Ltd rallied a little over 3 per cent in trade on Tuesday after the company received approval to restructure debt worth more than Rs 7,000 crore.

The entity, which has interests in various infrastructure segments, would get over Rs 2,500-crore priority loans from its lenders, PTI reported quoting a senior company official said.

At 09:40 a.m.; Lanco Infratech pared some of the morning gains and was trading 1.6 per cent higher at Rs 6.94. It has hit a low of Rs 6.93 and a high of Rs 7.04 in trade today.

Under the Corporate Debt Restructuring (CDR) plan, more than Rs 7,000 crore would be re-jigged by the company. There would be moratorium on interest payments for fund-based facilities, which would be in place for two years, said the PTI report.

Lanco Infratech has been grappling with tough business conditions and overall sluggishness in the infrastructure sector.

The priority loans to the tune of more than Rs 2,500 crore would help in improving the EPC (Engineering, Procurement and Construction) operations in different segments.