New Delhi:
Infrastructure major Lanco Infratech became the first company to face insolvency proceedings among the twelve entities identified by IDBI Bank to recover its dues by taking the resolution to insolvency courts, said a person familiar with the matter.
The bank has fund based exposure of Rs 7,799 crore and non-fund based exposure of Rs 3,349 crore as on March 2016, while the overall dues from the company are more than Rs 17,000 crore as the company's market capitalisation is just a fraction of it.
Power and road producer Lanco Infra shared tanked by almost 20 per cent, and Amtek Auto which is not in the current list but could be brought in the list of defaulters, also crashed 20 per cent to Rs 1.80 and Rs 23.45, respectively, a share as investors fret that after reorganising debt and new equity investments, the current value of shares may be nothing.
Banks led by IDBI Bank has initiated insolvency proceeding against Lanco Infratech, the first among the 12 stressed accounts that were identified byRs 17,000 crore even as the company's market capitalisation is just a fraction of it.
