IL&FS transfers two more road assets worth Rs 976 crore to Roadstar Infra Investment Trust | Popgen Tech

IL&FS on Wednesday said it has transferred two more road projects—Hazaribagh Ranchi Expressway and Thiruvananthapuram Road Development Company—to Roadstar Infra Investment Trust with an enterprise value of Rs 979 crore.


The infrastructure sector financial firm that went under insolvency in September 2018 still has four other road special purpose vehicles (SPVs) with an aggregate enterprise value of Rs 5,274 crore.


With this, the secured lenders of the two assets, which include Punjab National Bank, Union Bank, Indian Overseas Bank, Deutsche Bank, JP Morgan and L&T Infra Credit, with a combined debt of over Rs 630 crore, will get 100 percent recovery through restructuring. of their debt under Invit. In addition, creditors of the group (IFIN, ITNL, IL&FS) will receive Invit units as settlement of their rights, which will subsequently be transferred to the lenders of the creditors of the group as a resolution of their debt.


While Hazaribagh Ranchi Expressway is a BOT (Build, Operate and Transfer) annuity project involving four laning of 73 km Hazaribagh-Ranchi stretch of NH33 in Jharkhand with concession till FY28, Thiruvananthapuram Road Development Company is also BOT annuity project involving upgradation of 43 km of city road in Thiruvananthapuram with concession till FY32.


IL&FS had earlier this year transferred two more road assets to Roadstar Invit already—Moradabad Bareilly Expressway and Sikar Bikaner Highway—with an enterprise value of Rs 4,295 crore.


Senior secured lenders of these two SPVs include Bank of Baroda, Punjab National Bank, Indian Bank, Bank of India, L&T Finance and have also achieved 100 percent recovery through their debt restructuring on transfer to Invitation.


The cumulative enterprise value of these four road assets is Rs 5,274 crore, it added.


IL&FS plans to transfer the remaining five road SPVs worth over Rs 13,000 crore to Invit under the resolution framework, and will address debt of over Rs 6,800 crore in these nine SPVs.


Last week, the company had informed the National Company Law Appellate Tribunal that it has settled a debt of Rs 56,943 crore by September 2022 and reduced the number of subsidiaries to 101 from over 302 when the crisis started four years ago.


IL&FS, which defaulted on its loan repayments for the first time in September 2018, had to repay its lenders more than Rs 90,000 crore at that time.