Edelweiss Alternatives has sold an INR 750 crore loan of Chenani Nashri Tunnelway (CNTL) in Jammu and Kashmir to Assets Care and Reconstruction Enterprise (ACRE). The transaction is backed by Deutsche Bank. This transaction follows Edelweiss' previous acquisition in 2021 when it purchased CNTL's loan of INR 750 crore, recovering 75%-80% of the loan's value. CNTL currently has a debt of INR 5,454 crore, out of which INR 4,195 crore is owed to lenders.
CNTL, wholly owned by IL&FS Transportation Networks (ITNL), is likely to be transferred to an Infrastructure Investment Trust (InvIT) structure as part of its restructuring plan.
In the past, Federal Bank and IndusInd Bank had also sold their loans in CNTL to ACRE and Edelweiss ARC, respectively, with both trades occurring in the range of 75 to 78 paise on the rupee.
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