Three IL&FS Group Companies Sign Pacts With Lenders For Debt Servicing
The development is in line with the current IL&FS management’s asset monetisation plans aimed at repaying debt to mutual funds.
Three companies of the crisis-hit IL&FS Group have entered into agreements with secured lenders as part of a debt resolution process, Infrastructure Leasing and Financial Services Ltd. said on Monday.
The three IL&FS subsidiaries—Moradabad Bareilly Expressway Ltd., Jharkhand Road Projects Ltd. and West Gujarat Expressway Ltd.—have a total debt of Rs 5,071 crore.
The signing of the binding term sheets is in line with the current IL&FS management's asset monetisation plans aimed at repaying debt to mutual funds.
"Total debt across these three entities is approximately Rs 5,071 crore—Rs 3,242 crore from secured lenders and Rs 1,829 crore from unsecured lenders," a release said. The revised proposal involves certain concessions and modification of terms of financial debt availed by these entities from lenders.
The release of cash flow from existing accounts will be used for servicing financial and operational creditors, reduction in debt service coverage ratio requirement, utilisation of surplus cash and preference to secured lenders over unsecured lenders in case of a shortfall.
The major secured lenders of Moradabad Bareilly Expressway Ltd. include India Infra Debt Ltd., L&T Infrastructure Finance Company Ltd., L&T Finance Ltd., L&T Infra Debt Fund, Bank of Baroda and Bank of India. The overall debt is around Rs 1,567 crore.
The major secured lenders of Jharkhand Road Projects, which has five projects under development, include India Infra Debt Ltd., L&T Infra Debt Fund, Aditya Birla Sun Life Mutual Fund, Aditya Birla Health Insurance and Capital Asset Fund among. Its aggregate debt is around Rs 1,545 crore.
The major secured lenders of West Gujarat Expressway include L&T Infrastructure Finance Company Ltd. and L&T Infra Debt Fund. It has an aggregate debt of about Rs 129 crore.
With the term sheet, the three IL&FS companies have been moved from amber to green category. As part of the resolution efforts, the group companies have been classified into three categories, mainly based on their financial positions—green, amber and red.