Lanco Infratech, the fastest growing business conglomerates in India, is in talks with some banks for an easier loan repayment schedule, as it is suffering from high dues from consumers and strain on its cash flow on account of lower capacity utilization. It is looking for extension of loan tenure and lowering of interest cost as some of its power plants have been idled by fuel shortages.
The company’s discussions are taking place without formally applying for a restructuring under the so-called Corporate Debt Restructuring Cell, as it is hopeful of making repayments. If the company's loans are indeed admitted for a formal restructuring, it would become the biggest ever at nearly Rs 23,000 crore.
