The debt-ridden Infrastructure Leasing & Financial Services (IL&FS) has announced that it has signed binding term-sheets with secured lenders of three entities — Moradabad Bareilly Expressway, Jharkhand Road Projects and West Gujarat Expressway, as part of its ongoing resolution process.
The move comes in the wake of the company’s effort to monetise its assets and to repay the debt to mutual funds.
“Total debt across these three entities are approximately Rs 5,071 crore-Rs 3,242 crores from secured lenders and Rs 1,829 crore from unsecured lenders,” a statement by the beleaguered company stated.
The three entities have a cumulative debt of around Rs 5,000 crore towards Bank of Baroda (BOB) and L&T Infrastructure Finance Company, among others.
Senior advocate Ramji Srinivas, had earlier this week appeared on behalf of IL&FS, and informed the National Company Law Appellate Tribunal (NCLAT) that repayment to lenders will commence shortly.
The revised proposal will provide some concessions and modification of terms of financial debt availed by these entities from the lenders.
“The release of cash flow from existing accounts will be used for servicing financial and operational creditors, reduction in debt service coverage ratio requirement, utilisation of surplus cash and preference to secured lenders over unsecured lenders in case of a shortfall,” the company said in a statement.
The major secured lenders of Moradabad Bareilly Expressway are India Infra Debt Ltd, L&T Infrastructure Finance Company, L&T Infra Debt Fund, Bank of Baroda and Bank of India, and the overall debt is around Rs 1,567 crore.
The major secured lenders of Jharkhand Road Project are India Infra Debt Ltd, L&T Infra Debt Fund, Aditya Birla Sun Life Mutual Fund, Aditya Birla Health Insurance and Capital Asset Fund and the aggregate debt is around Rs 1,545 crore.
The major secured lenders for West Gujarat Expressway are L&T Infrastructure Finance Company and L&T Infra Debt Fund and the debt, in this case, is Rs 129 crore.
From the amber category, these three entities have been reclassified as the green category. Based on their financial positions the group companies have been classified into three categories, as part of the resolution process – green, amber and red.