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Federal Bank sells Chenani Nashri Tunnel's Rs.213-Cr debt to ACRE at 25% discount

Economic Times  

Federal Bank has sold its loan exposure in Chenani Nashri Tunnelway Ltd (CNTL) to an Ares SSG Capital-backed asset reconstruction company at a discount of 25%. It sold the loan after CNTL's owner, IL&FS Transportation Network Ltd (ITNL), failed to close a deal it signed almost a year ago with I Square Capital-backed Cube Highway to sell CNTL. The bank recovered nearly 75 paise on a rupee by selling its INR 212.63 crore loan to Assets Care & Enterprise Ltd. Cube Highways had offered INR 3,900 crore, implying a recovery of nearly 82% for lenders. But the long stop date of the agreement lapsed on August 30 this year, which prompted the bank to consider an out-of-court resolution.