Lenders to bankrupt infrastructure financier IL&FS have cleared the sale of three road projects that would fetch them nearly Rs 6,250 crore. The committee of creditors approved the sale of Chenani-Nashri Tunnel to Cube Highways with a vote of over 90 per cent. While the sale of Pune Sholapur Road to Italy-headquartered Autostrade was cleared with a vote of 84 per cent and Jorabat Shillong Expressway will be sold to Edelweiss-backed Sekura Roads with a 100 per cent vote.
IL&FS confirmed that it had received lenders’ approval for sale of these projects.
“A big hurdle has been passed for the sale of these projects, now Justice (retired) DK Jain and the bankruptcy appellate tribunal have to approve the distribution framework so that the sale proceeds can be divided appropriately among lenders,” an official involved with the matter said.
The Chenani-Nashri project has a debt of around Rs 5,454 crore; lenders have agreed to take a haircut of 27 per cent and sell it at a final bid value of Rs 3,929 crore. The Jorabat Shillong Expressway, which has total debt of Rs 1,406 crore, is being sold at over 27 per cent haircut at a final sale value of Rs 916 crore. The Pune Sholapur Road will be sold at Rs 1,404 crore, a haircut of 27 per cent to the lenders. The project has total debt of Rs 1,925 crore.
The board of IL&FS has put 14 operating road assets on the block. Highest bidders for five road assets have been identified for a total sale value of Rs 7,489 crore against a total debt of Rs 10,500 crore. Other road projects where bidders are being finalised include the Jharkhand Infrastructure Implementation Company (JIICL) and the Hazaribagh Ranchi Expressway. The remaining nine assets, which are to be sold via infrastructure investment trusts (InvITs), have a total debt of Rs 11,000 crore.
The InvIT will be created under the company’s subsidiary IL&FS Transportation Networks, which will own 15 per cent of the units as sponsor while the remaining 85 per cent will be allotted to other IL&FS group companies, which in turn will allot them to lenders as per their exposure.
IL&FS has a total debt of Rs 94,215 crore of which the four holding companies of the group — IL&FS, IL&FS Financial Services (IFIN), IL&FS Transportation Networks (ITNL), IL&FS Energy Development Company (IEDCL) — have a consolidated debt of Rs 48,000 crore.
This comprises 51 per cent of the group’s total debt.
Entities such as pension funds, employee welfare funds, provident funds, gratuity funds and superannuation funds have an exposure of Rs 10,173 crore to the group, while banks have an exposure of Rs.44,075 crore.
Source: Economic Times