Scam-hit Infrastructure Leasing & Financial Services (IL&FS) has said it has received approval from National Company Law Tribunal (NCLT) to introduce its phase 1 of Infrastructure Investment Trust (InvIT).
With this approval, six road projects — 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 be transferred to the newly formed Roadstar Infra Investment Trust under its InvIT Phase 1, basis approvals from authority and the lenders, IL&FS said in a filing with stock 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 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 1 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 & 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.
IL&FS InvIT will be the first of its kind vehicle for resolution of debt owed to lenders of ITNL and other group entities and it forms an important part of the overall group resolution framework adopted by the new board.
Being one of the larger ones in the road sector, the proposed InvIT has the potential to become a strong infrastructure player in the country, with appropriate management team and supervision.
The InvIT could act as a growth vehicle and add value to the initial unit holders who will be the lenders of the group.
