IL&FS gets NCLT approval for 'InvIT' Phase-I
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Debt-ridden IL&FS on Saturday said that it has received approval for launching the first phase of the Infrastructure Investment Trust (InvIT) from National Company Law Tribunal (NCLT).
Accordingly, with the approval, six road projects -- Barwa Adda Expressway Limited, Baleshwar Kharagpur Expressway Limited, Sikar Bikaner Highway Limited, East Hyderabad Expressway Limited, Moradabad Bareilly Expressway Limited, Jharkhand Road Projects Implementation Company Limited -- will be transferred to the newly-formed 'Roadstar Infra Investment Trust' under its 'InvIT Phase I' basis approvals from the authority and the lenders.
"These six road projects 'Special Purpose Vehicles' (SPVs) will be transferred to the 'InvIT' at an aggregate valuation of Rs 9,214 crore - determined by an independent valuer appointed in accordance with SEBI 'InvIT Regulations'."
"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."
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 proposes to address more than Rs 16,000 crore through 'InvIT' in phases. This approval by NCLT for phase I is part of the said process."
"IL&FS will be adding additional five road assets in phase II, on receipt of applicable approvals."
Besides, 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 Networks Limited (ITNL), a subsidiary of IL&FS, and will largely benefit by the formation of this 'InvIT'."
In addition, the statement said '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 'InvIT' 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."
