June 17, 2017 / 3:47 PM / 6 months ago

India's Lanco Infratech confirms RBI order on insolvency process

MUMBAI, June 17 (Reuters) - Lanco Infratech Ltd confirmed on Saturday that India’s central bank had directed the company’s lead lender IDBI Bank to initiate a corporate insolvency resolution process under the country’s bankruptcy laws.

Lanco is among 12 companies that the Reserve Bank of India (RBI) has ordered lenders to take to bankruptcy court as it strives to cut the country’s $150 billion in soured debt, sources told Reuters on Friday.

The 12 companies together account for about 2 trillion rupees ($31 billion), or roughly a quarter, of Indian bank loans that have been categorised as non-performing.

Lanco, whose businesses include power and infrastructure, said it had outstanding fund-based loans of 81.46 billion rupees and another 32.21 billion rupees in non-fund-based exposure as of March 31, 2016.

Non-fund-based exposure typically includes bank guarantees and letters of credit.

IDBI Bank has called a meeting of the group of lenders to the company on Monday to discuss the resolution process, Lanco said in a stock exchange filing. ($1 = 64.4300 Indian rupees) (Reporting by Devidutta Tripathy; Editing by Dale Hudson)

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