Crisis-hit IL&FS said on Monday that, as part of its resolution process, it have entered into an agreement with secured lenders of three group entities that have a debt burden of Rs 5,071 crore. The three entities that IL&FS has signed a binding term sheet with are Moradabad Bareilly Expressway Ltd, Jharkhand Road Projects and West Gujarat Expressway Ltd.
The move comes as part of the current management's efforts to monetise assets and help in repaying debt to mutual funds. A statement by the beleaguered company stated: 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.
The revised proposal involves some concessions and modification of terms of financial debt availed by these entities from the lenders. The company stated that 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.
India Infra Debt Ltd, L&T Infrastructure Finance Company, L&T Infra Debt Fund, Bank of Baroda and Bank of India are the major secured lenders of Moradabad Bareilly Expressway. The overall debt is around Rs 1,567 crore.
India Infra Debt Ltd, L&T Infra Debt Fund, Aditya Birla Sun Life Mutual Fund, Aditya Birla Health Insurance and Capital Asset Fund are among the major secured lenders of Jharkhand Road Project. The aggregate debt is around Rs 1,545 crore.
L&T Infrastructure Finance Company and L&T Infra Debt Fund are the major secured lenders for West Gujarat Expressway. The debt in this case is Rs 129 crore.
These three entities have been reclassified as the green category from the amber category. The group companies have been classified into three categories based on their financial positions, as part of the resolution process - green, amber and red.
(With PTI inputs)