In the news
17 Mar 2022

Brookfield Asset Mgmt Acquires IL&FS' HQ at BKC for Rs 1,100 crore

The IL&FS building, its unique glass facade seemingly mirroring BKC's emergence as Mumbai's primary corporate hub in the new millennium, is changing hands, with Brookfield Asset Management offering to pay more than Rs1,100 crore for the property that has been home to the debt-laden financier for decades. People with direct knowledge of the development said Brookfield made the highest offer for the 10-storied property that most accurately captures the pronounced northward shift in Mumbai's financial nerve centre, away from Nariman Point on the southern tip of the metropolis.

In the news
17 Mar 2022

IL&FS arm transfers Sikar Bikaner project to InvIT for Rs 375.5 cr

IL&FS Transportation Networks Ltd has completed the sale and transfer of its 100% shareholding in Sikar Bikaner Highways Ltd, a wholly owned subsidiary, to Roadstar Infra Investment Trust for Rs 375.5 crore, it informed the stock exchanges on Wednesday. The proceeds of the sale will be received in the form of units of the infrastructure investment trust (InvIT). The deal was struck at an enterprise value of Rs 1,015 crore, it added.

In the news
17 Mar 2022

IL&FS Transportation sells subsidiary for Rs 375 crore

Infrastructure company IL&FS Transportation Networks entered into a share purchase agreement with Axis Trustee Services (as the trustee of Roadstar Infra Investment Trust) and others to sell 100 per cent equity of Sikar Bikaner Highways, a wholly-owned subsidiary of the company, for Rs 375 crore. The proceeds will be received in the form of units of the trust. In addition, IL&FS Transportation Networks has also assigned its debts owed to Sikar Bikaner Highways of Rs 207.81 crore by executing a deed of assignment with Axis Trustee Services against which a consideration to the equivalent amount is to be received in the form of units of the trust.

In the news
10 Mar 2022

IFIN case: SC seeks response from Centre, Sebi on NCLT's jurisdiction

The Supreme Court has sought response from the central government, the Institute of Chartered Accountants of India, Sebi and others on appeals filed by network firm of Deloitte, the former auditor of IL&FS Financial Services (IFIN), and its chartered accountants questioning the National Company Law Tribunal's jurisdiction to prosecute and ban the past auditors for their alleged role in financial irregularities at the company.

In the news
3 Mar 2022

Lenders Gear Up for IL&FS Jammu Tunnel Debt Recast

Lenders to IL&FS' Jammu tunnel project have approved a proposal to appoint a valuer, forensic auditor, and ratings firm for restructuring the debt of the company, according to a stock exchange disclosure by IL&FS Transportation Network (ITNL) on Tuesday. ITNL has proposed a debt recast of Rs 5,454 crore loans to Chenani Nushri Tunnelway Ltd (CNTL), its special purpose company that constructed India's longest tunnel.

In the news
2 Mar 2022

Lenders to soon vote on new debt resolution plan for IL&FS Group arm CNTL

To speed up the debt resolution for the IL&FS group entity CNTL, the lenders led by State Bank of India will meet shortly to evaluate and vote on the new resolution plan that the firm has proposed at a valuation of Rs 5,257 crore. CNTL, which owes a little over Rs 5,500 crore to the lenders, had entered into a share sale agreement with the Singaporean infra major Cube Highways & Infrastructure in August 2020 for a Rs 3,900 crore deal. However, the agreement lapsed last August following which the management appointed an external valuer.

In the news
24 Feb 2022

IL&FS Fin Lenders Reject UVARC's Rs 370 crore Offer

The committee of creditors (CoC) of IL&FS Financial Services, has rejected the offer of UV Asset Reconstruction Company (UVARC) to buy the former's assets. UVARC had offered to pay Rs 370 crore for the Rs 4,300-crore loan book. The CoC has communicated to the IFIN management that it should try to recover loans on its own rather than selling them to an ARC. A spokesman for IL&FS confirmed the development.

In the news
20 Feb 2022

ABG Group firm value Rs 450 cr, up over six times in one month

An increase in valuation from Rs 450 crore to Rs 3,000 crore in less than a month — this is not a startup, but a property of ABG Cement Ltd, a sister concern of the scam-ridden ABG Shipyard Ltd, that the official liquidator attached to the Bombay High Court is trying to sell to help creditors recover money from the company In a filing before the Bombay High Court on December 8,2021, the official liquidator had asked the court to direct the Enforcement Directorate (ED) to allow the sale a Surat-based cement plant of ABG Cement, which the agency had attached in January 2021, following its probe into the collapse of IL&FS. At the time of the filing, the liquidator said it had found a buyer who was ready to pay Rs 450 crore for the plant but the ED objected to the sale as the attached property was fairly valued at Rs 952 crore. The ED on December 22,2021, asked the High Court to not allow the sale at such a low price.

In the news
19 Feb 2022

IL&FS Transportation Forensic Audit report Shows Gross Irregularities and Manipulation

he forensic audit report of IL&FS Transportation Networks (ITNL) and its special purpose vehicles (SPVs) by Grant Thornton, shows gross financial mismanagement, withdrawal of funds from projects by ITNL leading to large cost overruns and accounting manipulation. The report found that road projects had to suffer Rs8,077 crore cost overrun, largely due to funds being taken out by ITNL. Interest cost overruns of Rs3,433.42 crore were one of the significant components of project cost overruns contributing 42% of the total project cost overruns. The mechanism of this is as follows: IL&FS initially advanced loans at 10% to the SPVs. These loans were later assigned to other lenders. The assignment resulted in effect where SPVs had borrowed funds from the new lenders and repaid the loans taken from ITNL. The SPVs were charged an interest rate of 14-16% on loans assigned by ITNL against the 10-12% charged by ITNL earlier. The interest was to be borne by the SPVs, resulting in a cost overrun of Rs3,433 crore.

In the news
19 Feb 2022

ITNL bled SPVs for profits, saw Rs 8,077cr cost overrun

The report on the forensic audit of IL&FS Transportation Networks (ITNL) and its special purpose vehicles (SPVs) by Grant Thornton reveals that the road projects had to face a Rs 8,077-crore cost overrun. This was largely due to funds being taken out by ITNL. The group's transport arm took out the money from the road projects by charging excess project development and project management fees (PDF & PMF) and using fee money to make equity contributions to these SPVs. ITNL also assigned loans it had advanced to these projects to other lenders at higher rates.

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