D7 version? or how to achieve similar result using other imagecache modules?

You can achieve same result using Custom Action in Imagecache Actions module.

Try something like this :

// scale and crop
$sc_data = array();
$sc_data['width'] = '86';
$sc_data['height'] = '57';
image_scale_and_crop_effect($image, $sc_data);

// desaturate
image_desaturate_effect($image, array());

// resize canvas
$canvas_data = array();
$canvas_data['exact']['width'] = '100%';
$canvas_data['exact']['height'] = '200%';
$canvas_data['exact']['xpos'] = 'center';
$canvas_data['exact']['ypos'] = 'top';
$canvas_data['RGB']['HEX'] = '';
$canvas_data['under'] = 1;
canvasactions_definecanvas_effect($image, $canvas_data);

$image_color = image_load($image->source, $image->toolkit);
// scale and crop using same data
image_scale_and_crop_effect($image_color, $sc_data);

// insert colored image
image_overlay($image, $image_color, '0', '57px', '100');

return TRUE;