The Hyderabad bench of the National Company Law Tribunal (NCLT) on Wednesday approved insolvency proceedings against Lanco Infratech following an application by IDBI Bank under the Insolvency and Bankruptcy Code (IBC).
The tribunal has appointed Savan Godiawala as the interim resolution professional (IRP) and posted the case to August 31. Lanco Infratech owes banks Rs 43,502 crore and reported a loss of Rs 890 crore on the back of Rs 1,635 crore in revenues in FY17.
According to the NCLT order, the total debt sanctioned by IDBI Bank to Lanco Infratech is about Rs 1,234 crore, in addition to another Rs 170 crore through a separate loan. “The debtor has executed several mortgage deeds in respect of several immovable and movable properties by depositing title deeds …” the order stated.