This company is facing bankruptcy proceedings and it owes more than Rs 17,000 crore

The IDBI Bank has begun recovering its dues and the first company to face bankruptcy action is the power and roads builder-Lanco Infratech.

The IDBI Bank will recover dues by taking resolution to insolvency courts and the bank has fund based exposure of Rs 7,799 crore and non-fund based exposure of Rs 3,349 crore as on March 2016, while the overall dues from the company are more than Rs 17,000 crore.

The banks have identified 12 stressed accounts and Lanco Infratech is the first one to face action.

The company owes banks Rs 18,000 crore and its market value is at Rs 613 crore.

"For the next six months, lenders and the promoters will be on their toes to arrive at an amicable resolution. The joint lenders forum will be meeting regularly to arrive at consensus among lenders before approaching the NCLT," a bank official from SBI who did not want to be named told ET.

With the RBI mandating bankruptcy proceedings, many believe that new set of investors would have to invest equity and existing ones will be wiped out even if promoters managed to hang on by bringing in more funds.