Loan defaulters: IDBI starts insolvency proceedings against Lanco Infratech
Mumbai: Insolvency proceeding against Lanco Infratech, one of the 12 loan defaulting banks identified by the Reserve Bank of India (RBI) has been started by IDBI.
The proceeding comes on the heels of the RBI directing certain banks to take action against defaulting borrowers. According to the Economic Times, IDBI has initiated the proceeding under the Insolvency and Bankruptcy Code. “Lanco Infratech Limited (LITL)...vide letter dated June 17, 2017, intimated under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that Reserve Bank of India directed IDBI Bank Limited, the lead bank of LITL to initiate Corporate Insolvency Resolution Process (CIRP) for LITL under the Insolvency and Bankruptcy Code, 2016,” the company said.
Lanco Infratech is among the 12 firms identified by the central bank with a combined debt of over Rs 1,50,000 crore, for proceedings under the newly enacted Insolvency and Bankruptcy Code, 2016. It has fund based exposure of Rs 7799 crore and non-fund based exposure of Rs 3349 crore as on March 2016.
Other accounts identified by RBI include Essar Steel, Bhushan Steel, Electrosteel Steel, Alok Industries, Jyoti Structures, Monnet Ispat and Jaypee Associates. According to RBI, 12 bad loan accounts owe Rs 2.5 trillion to the system, which constitute around 25 per cent of gross bad loans.
Bankers are supposed to meet today to finalise their next course of action on six of the 12 bad loan accounts for immediate referral to NCLT.
