Lanco Infratech employees not paid for 3-4 months

Discussion in 'Economy & Infrastructure' started by bhramos, Nov 6, 2013.

  1. bhramos

    bhramos Elite Member Elite Member

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    NEW DELHI: Debt-ridden infrastructure firm Lanco InfratechBSE 2.54 % has not paid salaries to about 1,000 of its employees for the past three-four months while proceeding with its 7,500-crore corporate debt restructuring proposal.

    The Gurgaon-based firm has reduced its workforce by about 2,000 over the past year as it has sacked a few employees and others have quit to join other firms, including state-run Power Finance Corp and Rural Electrification Corp.

    Employees of the company's troubled projects were not getting salaries on time, a person familiar with the matter said, adding that several former employees had moved backed to Hyderabad. The company had relocated to Gurgaon from Hyderabad in 2009.

    The firm has approached the government's corporate debt restructuring cell to recast loans of the holding company. "The proposal is under way and Lanco Infratech has been asked to give more details about its subsidiary companies," said the person, who did not wish to be named. Lanco Infratech did not respond to an email sent by ET.

    Consolidate debt of the group stands at about 35,000 crore. The company's loss widened to 579 crore in the first quarter of this fiscal on account of forex losses and poor operating capacity of its plants.

    Two of the company's major operating plants are operating at very low capacity, generating negative cash flow, said Rupa Shah, research analyst-institutional equities with Prabhudas Lilladher.

    "The firm's Udupi project in Karnataka accumulated losses as prices of imported coal doubled last year. Its Anpara-C project faces a fuel crunch. Moreover, dues from state governments of Uttar Pradesh, Karnataka, Andhra Pradesh and Haryana remain high at 2,800 crore," Shah said.

    Lanco Infratech employees not paid for 3-4 months - The Economic Times

    Lagadapati gone.....
     
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  3. bhramos

    bhramos Elite Member Elite Member

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  4. bhramos

    bhramos Elite Member Elite Member

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    [video=youtube_share;ZR8Hiuwvf_E]http://youtu.be/ZR8Hiuwvf_E[/video]
     

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