The Centre has filed an application with the National Company Law Appellate Tribunal for interim distribution of Rs 16,200 crore as part of the ongoing resolution of Infrastructure Leasing and Financial Services Ltd. The application, filed with the Delhi Bench of NCLAT, seeks interim distribution of Rs 10,950 crore in cash and Rs 5,250 crore of InvIT units by March 31.
IL&FS Group has completed sale of its 35 per cent stake in Warora Chandrapur Ballarpur Toll Road Limited (WCBTRL) to its majority joint venture partner Vishvaraj Infrastructure Limited (VIL). The sale entails VIL taking over entire external debt of WCBTRL amounting to 306 crore, providing equity value of over Rs 12 crore and settling IL&FS Group dues amounting to Rs 6 crore – thereby resolving Rs 324 crore from the overall IL&FS Group debt of approx. Rs 99,000 crore, as of October 2018. The Group had already received requisite approvals from the ITNL CoC, Supreme Court Justice (retd) D K Jain and Hon’ble NCLT to complete the transaction.
In what will come as a relief for pension and provident funds, including those of army personnel as well as other creditors, IL&FS Group has proposed to distribute cash and InvIT units of nearly Rs 20,000 crore. The board, headed by banker Uday Kotak, has already held discussions with the ministry of corporate affairs (MCA) and suggest that the government approach the National Company Law Appellate Tribunal (NCLAT) to transfer the money lying with various entities after clearing some of the payments at the entity level, as well as dealing with debt of over Rs 8,500 crore, while selling some of the companies and their assets.
The exodus of independent directors at PTC India Financial Services Ltd over corporate governance issues has prompted several regulators to seek a response from the company on the allegations levelled by the directors, said two people with direct knowledge of the matter. An after-market hours filing by PTC India Financial on Wednesday said independent directors Kamlesh Vikamsey, Thomas Mathew and Santosh Nayar resigned, highlighting "instances of serious lapses in corporate governance". Describing another instance of "misleading" the investors and the board, Vikamsey said fraud committed by a borrower, IL&FS Tamil Nadu Power (ITPCL), was not reported to the board. 'The fact of fraud is camouflaged in the annexure," Vikamsey alleged. An ITPCL spokesperson said: "ITPCL loan account has not been declared a fraud by any lender till date and, as such, has not been reported as a fraud in RBI CRILC reporting. Any such information/mention of the account being declared as fraud is factually incorrect."
Brookfield Asset Management has emerged as the frontrunner to acquire IL&FS group's iconic 4.5-lakh sqft headquarters in Mumbai's Bandra Kurla Complex. While a few others, including private equity firms and real estate companies, had shown interest none of them has matched the bid by Brookfield. IL&FS board has put the group's corporate headquarters on the block as part of the resolution process to address Rs 99,000 crore of debt. Constructed in 2005, the 11-storey building was one of the earliest to come up in the business district. The IL&FS board has been seeking to realise Rs 1,000 crore from the sale of the property However, sources said that Brookfield's bid is a bit lower.
The IL&FS Group has completed sale of its 26 per cent stake in ONGC Tripura Power Company (OTPC) to Gas Authority of India Limited (GAIL) at an aggregate valuation of Rs 1,227 crore. With this transaction, IL&FS has resolved a debt of approx. Rs 3,656 crore - that formed part of the overall Group debt of approx. Rs 99,000 crore, as of October 2018. IL&FS Group held its 26 per cent stake in OTPC in two subsidiaries – approx. 12 per cent held by IL&FS Energy Development Company Ltd (IEDCL) and 14 per cent held by IL&FS Financial Services Ltd (IFIN). The Group has duly received an aggregate sum of Rs 319 crore for its 26 per cent stake from GAIL in the two companies thereby closing this stake sale transaction.
A lifeline for intercity travel since its inauguration in January 2001, the 9.2km Delhi-Noida-Direct (DND) Flyway no longer looks like the showpiece infrastructure project it was built to be. A pale shadow of its former self, it has met the fate of many an Indian road: patches of rough surfaces and potholes, damaged signboards, defunct streetlights in places, absent road markings at others and garbage collecting along the shoulders. The DND toll was scrapped by the high court, which heard a petition from FONRWA, a grouping of Noida-based residents' welfare associations, against the "excessive" user fee that was being charged from commuters (Rs 25, one way for a car) and ruled in its favour. The financial troubles of its parent company have also affected NTBCL, which is a special purpose vehicle floated by infrastructure giant IL&FS. The DND was conceived to be run under the build- own-operate-transfer (BOOT) model in the concession agreement signed between the Noida Authority, IL&FS and NTBCL in 1997. IL&FS was responsible for all investments in the project and the agreement gave NTBCL control of the DND for 30 years from the contract date, or till IL&FS could recover its entire investment. NTBCL argued it had not been able to recover its cost, but the court, which perused audit reports of its income, rejected that contention
IL&FS Infrastructure Investment Trust ( IL&FS InvIT) has commenced business with acquisition of first road asset -- Moradabad-Bareilly Expressway Ltd. The final consideration for sale of shares is Rs 576.77 crore and adjusted final consideration for assignment of receivables is Rs 14.26 crore. This transaction is based on final valuation and adjustments as stated in the Share Purchase Agreement (SPA).
IL&FS has submitted a restructuring proposal to lenders of the Chenani-Nashri Tunnelway (CTNL), offering them a better deal after a plan to sell the project to Cube Highways fell through. The proposal values the project at Rs 5,200 crore — Rs 1,300 crore more than the valuation under the Cube deal and envisages an immediate payout of Rs 300 crore of back interest dues from April 2021. The restructuring will turn the company into a 'green entity' with cash flows capable of servicing all creditors. Under the Cube deal, secured lenders would have got 97% recovery and unsecured lenders and operational creditors would get only 36%. According to the proposal sent by IL&FS to lenders, CNTL debt will be restructured effective April 1, 2021, and the interest will start from this date. The recovery for secured and unsecured lenders would be 100% and 90% respectively
Public sector banks have lost nearly Rs 2.85 lakh crore on account of loan dues of 13 corporates even as the banks are used to bail out ailing financial institutions such as Yes Bank and IL&FS, United Forum of Bank Unions alleged on Monday. In press release, UFBU's Convener B Rambabu said the organisation calls for a two-day all India bank strike on December 16 and 17 protesting against Banking Laws (Amendment) Bill 2021 and opposing the centre's alleged move to privatise PSBs.