Scam-tainted Infrastructure Leasing & Financial Services (IL&FS) said it has received an approval from the National Company Law Tribunal (NCLT) to introduce phase one of Infrastructure Investment Trust (InvIT).
With this approval, six road projects namely Barwa Adda Expressway Ltd, Baleshwar Kharagpur Expressway Ltd, Sikar Bikaner Highway Ltd, East Hyderabad Expressway Ltd, Moradabad Bareilly Expressway Ltd and Jharkhand Road Projects Implementation Company Ltd will would be transferred to the newly-formed Roadstar Infra Investment Trust under its InvIT Phase I, IL&FS said in a filing with the exchanges.
“These six road projects’ special purpose vehicles (SPVs) will be transferred to the InvIT at an aggregate valuation of ₹9,214 crore determined by an independent valuer appointed in accordance with SEBI InvIT Regulations,” it added.
“The valuation presents a significantly improved recovery for the creditors of these SPVs as well as group companies that have provided debt to these SPVs,” it further said.
On transfer to the InvIT, these six SPVs would move away from debt servicing moratorium extended to IL&FS Group companies and will start servicing their debt, resulting in a resolution of these SPVs.
IL&FS said it proposes to address more than ₹16,000 crore through InvIT in phases. This approval by NCLT for Phase I is part of this process.
IL&FS will be adding additional five road assets in Phase 2, on receipt of applicable approvals.
The InvIT has already received final registration from SEBI and all constituents to form the InvIT have been put in place.
State Bank of India, Punjab National Bank, Canara Bank, Bank of India and Indian Overseas Bank are some of the key lenders to IL&FS Transportation Network Ltd. (ITNL), a subsidiary of IL&FS, and will largely benefit by the formation of this InvIT.
