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.
The IL&FS Group has entered into a share purchase agreement with Axis Trustees Services Ltd for sale and transfer of its entire holding in Moradabad Bareilly Expressway Ltd for Rs 373.59 crore. The sale marks the transfer of the first road asset to a recently-formed IL&FS InvIT, Roadstar Infra Investment Trust. Axis Trustees Services Ltd had been appointed as the trustee of the InvIT. IL&FS has also assigned debt of about Rs 14.34 crore held by its subsidiary IL&FS Transportation Networks Ltd in Moradabad Bareilly Expressway Ltd to the new InvIT.
Federal Bank has sold its loan exposure in Chenani Nashri Tunnelway Ltd (CNTL) to an Ares SSG Capital-backed asset reconstruction company at a discount of 25%, people with knowledge of the matter said. The Kerala-based lender sold the loan after the road asset’s owner, IL&FS Transportation Network Ltd (ITNL), failed to close a deal it signed almost a year ago with I Square Capital-backed Cube Highway to sell CNTL. Federal Bank recovered nearly 75 paise on a rupee by selling its Rs 212.63 crore loan to Assets Care & Enterprise Ltd, the people said. The transaction closed early this week, one of them said
IL&FS has sold its 52.3% stake in Terracis Technologies (TTL) to Philippines-based Falcon SG Holdings. The transaction has addressed Rs 1,275 crore of the IL&FS group debt and resulted in its exit from technology business. The sale of TTL has been completed in accordance with the resolution framework, under supervision of Justice (retd) D K Jain and with an approval from the Mumbai bench of the NCLT. It will result in over 200 employees from these companies shifting to the new promoter Falcon SG, which is a wholly owned subsidiary of Falcon Investments Pte Ltd, a part of Gateway Partners and Avenue Capital Group.
Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) on Thursday said it has completed sale of its 52.26% stake in Terracis Technologies Ltd (TTL) to Falcon SG Holdings. With this, the group has resolved close to Rs 1,275 crore of its debt and has completely exited the technology business, a release said. This is an equity positive transaction wherein the entire debt has been taken over by the new promoter, it said. The transaction would release corporate guarantees extended by various IL&FS group entities and will also facilitate reduction of five entities within the group.