Shardul Amarchand Mangaldas & Co. represented the consortium of lenders of Lanco Infratech Limited (LITL) led by IDBI Bank Limited in realization of the debt secured by pledge, hypothecation and mortgage through sale of the pledged equity share capital and the preference share capital held in Lanco Anpara Power Limited (LAPL) to MEIL Energy Private Limited and release of subservient security interest over the assets of LAPL. The primary debt obligation was owed by LITL which has recently undergone liquidation process under the aegis of the Insolvency and Bankruptcy Code, 2016. LAPL is an erstwhile step-down subsidiary of LITL.
This is a composite transaction involving acquisition of LAPL by MEIL Energy Private Limited along with the release of subservient security interest created over the assets of LAPL (being an erstwhile step-down subsidiary of LITL) for securing the credit facilities granted to LITL by the consortium lenders of LITL.
Presently, 71.17% of the equity share capital and 45.67% of the preference share capital of the LAPL, which were pledged for the benefit of LITL Lenders, have been sold to MEIL Energy Private Limited. The process for the sale of the balance shareholding i.e. 28.66% of the equity share capital and 54.33% of the preference share capital of Lanco Anpara Power Limited is currently underway.
The transaction team was led by Anoop Rawat, Partner; Rohan Jain, Partner; Sagar Dhawan, Partner; Vimal Asthana, Senior Associate; Kshitij Arora, Senior Associate and Shruti Jaju, Associate
About Shardul Amarchand Mangaldas & Co.:
Shardul Amarchand Mangaldas & Co., founded on a century of legal achievements, is one of India’s leading full-service law firms. The Firm’s mission is to enable business by providing solutions as trusted advisers through excellence, responsiveness, innovation, and collaboration. SAM & Co. is known globally for its exceptional practices in mergers & acquisitions, private equity, competition law, insolvency & bankruptcy, dispute resolution, capital markets, banking & finance, and projects & infrastructure.
The Firm has a pan-India presence and has been at the helm of major headline transactions and litigations in all sectors, besides advising major multinational corporates on their entry into the Indian market and their business strategy. Currently, the Firm has over 750 lawyers including 160 Partners, offering legal services through its offices in New Delhi, Mumbai, Gurugram, Ahmedabad, Kolkata, Bengaluru, and Chennai.