IL&FS receives bids of Rs 13,000 crore for 10 road assets

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SME Times News Bureau | 10 Sep, 2019
Crisis-ridden infrastructure financing major IL&FS has received binding financial offers totalling nearly Rs 13,000 crore for 10 of its domestic road assets.

In addition to this, the IL&FS Group entities continue to hold rights to receive claims with gross value of over Rs 1,900 crore filed with various concession authorities in respect of these assets.

"The combined value of bids and these claims will help address the cumulative financial debt of Rs 17,700 crore, as of October 2018, in these assets," a company statement said.

The bids for the road assets were opened on September 9 and the IL&FS Board is evaluating these offers in consultation with its advisors.

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

IL&FS Group, which has about Rs 91,000 crore in debt, is facing severe liquidity crisis. During the period July 2018 to September 2018, two of its subsidiaries reported having trouble in paying back loans and inter-corporate deposits to lenders.

In July 2018, the road arm of IL&FS was facing difficulty in making repayments due on its bonds. Further, in early September 2018, one of the subsidiaries of IL&FS Group was unable to repay a short-term loan of Rs 1,000 crores taken from Small Industries Development Bank of India (SIDBI).

Many of the group companies have defaulted in repayments of various short and long-term deposits, inter-corporate deposits, and commercial papers.

Based on the directions issued by the bankruptcy court, the National Company Law Tribunal, in October 2018, a new Board of Directors was reconstituted under the chairmanship of Uday Kotak.

"The new Board has initiated monetization of number of other assets - including education, waste management, technology, real estate and key international assets. Binding financial bids for the assets are expected soon," the company statement said on Tuesday.