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IL&FS receives bids worth Rs 13,000 crore for 10 road projects

FE Bureau
The IL&FS group has defaulted on short-term and long-term debt obligations of nearly Rs 1 lakh crore since August 2018

Cash-strapped infrastructure major IL&FS has received bids worth around Rs 13,000 crore for 10 of its road assets. In a statement on Tuesday, the company said it was evaluating the offers in consultation with its advisers. These assets have a total debt of over Rs 17,700 crore, the company had earlier said. Bids were opened on September 9. Additionally, the group holds the rights to receive claims worth over Rs 1,900 crore filed with various authorities with respect to these assets, it said.

The IL&FS group has defaulted on short-term and long-term debt obligations of nearly Rs 1 lakh crore since August 2018. With the sale of these assets and the claims worth Rs 1,900 crore expected from them, along with proceeds worth Rs 4,800 crore expected from the sale of seven wind energy assets, the group expects to address about Rs 24,400 crore of debt.

IL&FS received bids for companies, including Rajasthan Infrastructure Development Company of Rajasthan (RIDCOR) and Pune-Sholapur Road Development Company, which are classified as "red", meaning they cannot fulfil any debt obligations whatsoever. Only one of these assets-Jharkhand Infrastructure Implementation Company-is categorised as a "green" entity under the IL&FS resolution framework, meaning it can meet all payment obligations.

FE had in July reported that investors including Canada's CDPQ, NIIF, Brookfield and Edelweiss were planning to submit bids for 18 road assets of IL&FS, including Hazaribagh-Ranchi Expressway and Pune-Sholapur Road Development Company.

"Over the next few weeks, members of the board will meet with lenders to evaluate these bids and finalise them. Following that, the sale process will have to be approved by retired Justice DK Jain and the National Company Law Tribunal (NCLT)," a person aware of the developments said.

Last month, the NCLT also approved the sale of seven of the group's wind energy assets to Japan-based ORIX Corporation.

The IL&FS board was replaced by a government-appointed one last year after the group defaulted on short-term and long-term debt obligations. The total outstanding of the group as on September 2018 is Rs 99,354 crore.