Lanco Infratech looks to sell four renewable energy assets

MUMBAI: Lanco Infratech Ltd, which is undergoing insolvency proceedings, is planning to sell 73 megawatt (MW) of four renewables assets and sought bids from interested buyers.

In a newspaper advertisement, Savan Godiawala, interim insolvency professional in charge of the company, said that indicative time for signing confidentiality undertaking is December 15 for potential bidders who are keen to offer bids for either full or part of the assets.

The assets on sale include 35MW each of solar assets in Rajasthan and Gujarat, and 3MW of wind assets in Karnataka. These assets are owned directly by Lanco Infratech or indirectly through special purpose vehicles.

Lanco Infratech was among the 12 identified cases referred to the National Company Law Tribunal (NCLT) by the Reserve Bank of India (RBI). Following the central bank’s directive, IDBI Bank, one of the lenders to the company, had filed a petition which was accepted on 7 August.

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 (IBC).

During this period, the board is suspended, an interim resolution professional takes charge and existing proceedings against the defaulter are suspended. This moratorium can be extended up to 270 days. The claims of 29 financial creditors stand at ₹45,263 crore, information on company’s website showed.