IL&FS receives approval to sell Chenani Nashri Tunnel to Cube highways for Rs 3900 crore

Industry:    2020-12-04

Infrastructure Leasing and Financial Services (IL&FS) group has received Justice DK Jain’s approval to sell the Chenani Nashri Tunnelway Limited (CNTL) to Cube Highways for a total consideration of Rs 3900 crore. This would help resolve total debt of Rs 4910 crore in which the lender’s would take a 20% haircut.

The company will now seek approval from NCLT and NHAI to complete the sale. The proceeds of the sale will be distributed in accordance with the resolution framework, IL&FS said.

In March this year the committee of creditors had approved the sale of Chenani Nashri Tunnel to the highest bidder Cube Highways with a vote of over 90%.

Part of the ambitious 286 km long four-laning of the Jammu-Srinagar National Highway, the 9.2 km Chenani Nashri Tunnel cuts down distance between Jammu and Srinagar by 31 kms.

In addition to sale of road assets, IL&FS has also secured in-principle approval from Sebi to form INVIT for 11 road assets in two phases. Sale of road assets is part of the IL&FS board strategy to resolve debt worth Rs 99,000 crore.

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