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NCLT admits insolvency proceedings against Lanco Infratech

LiveMint logoLiveMint 10-08-2017 Alekh Archana

Mumbai: The National Company Law Tribunal (NCLT) has admitted insolvency proceedings against Lanco Infratech Ltd, among the 12 identified cases referred to the tribunal following the Reserve Bank of India’s 13 June directive, the company said in a stock exchange filing on Thursday.

The Hyderabad bench of NCLT accepted the petition moved by IDBI Bank and appointed Savan Godiawala as the interim insolvency professional. The order was passed on 7 August.

“As a result of the said order, the power of the board directors stands suspended,” the company said.

Upon admission of the petition, a six-month moratorium begins to decide on a resolution plan in accordance with the Insolvency and Bankruptcy Code, 2016. During this period, all existing proceedings against the defaulter are suspended. This moratorium can be extended up to 270 days.

So far, various benches of NCLTs have accepted cases against 11 identified large borrowers, with Era Infra Engineering being the only exception.

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