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IL&FS gets 14 bids for 10 domestic road assets

According to the agency, IL&FS Financial Services Ltd had borrowings of more than Rs 17,000 crore from debt instruments and bank loans.

The embattled IL&FS group has received 14 binding bids for ten domestic road assets that account for 19 per cent of its total debt burden of over Rs 99,000 crore.

These assets, accounting for total debt of over Rs 17,700 crore, received bids from multiple bidders, IL&FS said.

"This development represents yet another important milestone in the overall resolution process for IL&FS group being undertaken by the new board," it said.

The 10 road assets that received bids include one green asset Jharkhand Infrastructure Implementation Company (JIICL) and five Amber Assets Jharkhand Road Projects Implementation Company Ltd (JRPICL), Moradabad Bareily Expressway (MBEL), Chenani Nashri Tunnelway (CNTL), Hazaribagh Ranchi Expressway Limited (HREL), Jorabat Shillong Expressway Limited (JSEL).

IL&FS said JRPICL and MBEL are in the process of being re-classified from amber to green on the basis of the restructuring proposals agreed with its lenders.

It also received bids for four red assets: Baleshwar Kharagppur Expressway Ltd, Pune Sholapur Road Development Company, Road Infrastructure Development Company of Rajasthan and Sikar Bikaner Highway Ltd.

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Assets being sold across IL&FS group

The new board of IL&FS, as part of the overall resolution process for the group, has initiated the sale of a number of other group assets as well, which seeks to address a significant portion of group debt.

The process for inviting binding bids for the road assets was launched through a public advertisement inviting expressions of interest.

In another key development, the NCLT, Mumbai Bench in its order dated August 28, 2019 cleared the sale of seven operating wind energy SPVs of the IL&FS group to ORIX, Japan for an equity value of approximately Rs 593 crore.

In addition, ORIX has also agreed to taking over the entire SPV debt totalling approximately Rs 3,700 crore.

"With these 2 developments, almost a quarter of IL&FS group debt is being addressed," IL&FS said. Sale processes for these assets including education, waste management, technology, real estate and key international assets are currently underway and binding financial bids are expected in stages over the next few months.