M&A

M&A

IL&FS transfers Pune-Sholapur Road asset to InvIT

Economic Times  

IL&FS has completed the transfer of its fifth road asset - Pune Sholapur Road Development Company Ltd (PSRDCL) - to Roadstar Infra Investment Trust (InvIT) as part of its debt resolution strategy. The four road assets that have already been transferred to the InvIT include Moradabad Bareilly Expressway Ltd (MBEL); Sikar Bikaner Highway Ltd (SBHL); Hazaribagh Ranchi Expressway Ltd (HREL) and Thiruvananthapuram Road Development Company Ltd (TRDCL). The total enterprise value of InvIT, with these five assets, now stands at around INR 7,300 crore. With this transfer, secured lenders of this asset will get full recovery of their dues under the InvIT structure while the group lenders will be issued InvIT units as settlements for their loans. As part of its strategy to resolve the INR 99,000 crore debt (as of October 2018), IL&FS had opted to use the InvIT route to address nearly INR 15,000 crore debt under its road assets. A total of 10 road assets are to be transferred under the InvIT structure, in phases, with only five road assets transferred till date.