MUMBAI: The National Company Law Tribunal (NCLT) has allowed IL&FS to sell road projects of IL&FS Transportation Network through Infrastructure Investment Trust (InvIT). With this approval, the company will now be able to issue units of invitation including major lenders State Bank Of India, Punjab National Bank, Canara Bank, bank of india And Indian Overseas Bank.
The InvIT had already got the final registration from SEBI and all other requirements are in place to form an InvIT. The sale of road properties through the InvIT route will solve the group’s debt of Rs 9,214 crore. IL&FS spokesperson confirmed the development. “The valuation presents a much better recovery for the creditors of these SPVs as well as the group companies that have extended loans to these SPVs,” the spokesperson said.
Banks have already written off most of their debt to the IL&FS group as it was classified as a non-performing asset. By floating the InvIT they will acquire units that will be supported by cash flows from road projects. This will add to the bottom-line of the lending banks.
InvIT comprises six road projects – Barwa Adda Expressway, Baleshwar Kharagpur Expressway, Sikar Bikaner Highway, East Hyderabad Expressway, Moradabad Bareilly Expressway and Jharkhand Road Projects Implementation Company.
The valuation of Rs 9,214 crore was done by an independent valuer appointed as per SEBI InvIT rules. IL&FS has proposed to resolve over Rs 16,000 crore in tranches through InvITs. This approval by NCLT for Phase-I is part of the said process. In the second phase, the group plans to add five road properties.
The InvIT had already got the final registration from SEBI and all other requirements are in place to form an InvIT. The sale of road properties through the InvIT route will solve the group’s debt of Rs 9,214 crore. IL&FS spokesperson confirmed the development. “The valuation presents a much better recovery for the creditors of these SPVs as well as the group companies that have extended loans to these SPVs,” the spokesperson said.
Banks have already written off most of their debt to the IL&FS group as it was classified as a non-performing asset. By floating the InvIT they will acquire units that will be supported by cash flows from road projects. This will add to the bottom-line of the lending banks.
InvIT comprises six road projects – Barwa Adda Expressway, Baleshwar Kharagpur Expressway, Sikar Bikaner Highway, East Hyderabad Expressway, Moradabad Bareilly Expressway and Jharkhand Road Projects Implementation Company.
The valuation of Rs 9,214 crore was done by an independent valuer appointed as per SEBI InvIT rules. IL&FS has proposed to resolve over Rs 16,000 crore in tranches through InvITs. This approval by NCLT for Phase-I is part of the said process. In the second phase, the group plans to add five road properties.
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