IL&FS, the board of directors of the company, has submitted an application to the National Company Law Appellate Tribunal (NCLAT) against several lenders, including IFCI, IIFCL, BoB, SBI, PNB, Indian Bank, and the government of Jharkhand, citing “undue delays” in obtaining consent for the transfer of road assets worth Rs 5,500 crore to an Infrastructure Investment Trust (InvIT) operated by ET Infra.
In accordance with the resolution framework, the company management had approved the transfer of four road assets, namely BKEL, BAEL, JIICL, and JRPICL, to the InvIT for a total value of Rs 5,500 crore. However, lenders have been sluggish in approving the proposed restructuring plans for these assets.
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As per the resolution framework, IL&FS proposed transferring the four road assets to the InvIT at enterprise values (EV) totaling nearly Rs 5,500 crore. This includes Jharkhand Infrastructure Implementation Company Limited (JIICL) valued at Rs 793 crore, Barwa Adda Expressway Limited (BAEL) valued at Rs 1,817 crore, Baleshwar Kharagpur Expressway Limited (BKEL) valued at Rs 868 crore, and Jharkhand Road Projects Implementation Company Limited (JRPICL) valued at Rs 1,987 crore.
An IL&FS spokesperson stated that the new board is encountering challenges and significant delays in transferring these road assets to the InvIT, which is a crucial aspect of the approved resolution framework. Seeking intervention from the NCLAT, IL&FS aims to expedite the process, eliminate delays, and achieve the desired resolution. Regarding BAEL, three out of five lenders holding loans worth Rs 1,269 crore have already approved the restructuring proposal. IFCI intends to exit its exposure to the project, and the InvIT has offered to assume IFCI’s loan exposure.
The IL&FS board remains committed to addressing these challenges and securing the necessary approvals to facilitate the transfer of road assets to the InvIT, thereby advancing the resolution process according to the approved framework.
