Scam-hit Infrastructure Leasing and Financial Services (IL&FS) said it has received approval from the National Company Law Tribunal (NCLT) to start the first phase of Infrastructure Investment Trust (InvIT).
With this approval, six road projects namely Barwa Adda Expressway Limited, Baleshwar Kharagpur Expressway Limited, Sikar Bikaner Highway Limited, East Hyderabad Expressway Limited, Moradabad Bareilly Expressway Limited and Jharkhand Road Projects Implementation Company Limited will be transferred to the newly formed Roadstar Infra. Investment trust under its InvIT Phase I, IL&FS said in a filing with the exchanges.
“Special Purpose Vehicles (SPVs) of these six road projects will be transferred to InvIT at a total valuation of ₹ 9,214 crore as determined by an independent assessor appointed as per SEBI InvIT Regulations.”
It further said, “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.”
On shifting to InvIT, these six SPVs will move away from the debt service moratorium extended to IL&FS group companies and start repaying their loans, resulting in the resolution of these SPVs.
IL&FS said it has proposed to resolve over ₹16,000 crore through InvITs in phases. This approval by NCLT for Phase I is part of this process.
IL&FS will add an additional five road properties in Phase 2, upon receipt of applicable approvals.
The InvIT has already got the final registration from SEBI and all the components have been put in place to form the InvIT.
State Bank of India, Punjab National Bank, Canara Bank, Bank of India and Indian Overseas Bank are some of the major lenders to IL&FS Transportation Network Limited (ITNL), a subsidiary of IL&FS, and largely stemmed from the formation of this invitation. will be benefitted. .
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