MUMBAI: The IL&FS board decided on Tuesday to consider the option of forming InvIT (Infrastructure Investment Trust) model to complete road projects, Kotak Mahindra Bank MD Uday Kotak said.
Kotak and his team presented the one-year progress report on the resolution of IL&FS. They wanted to consider the option post bidding process for road assets, said Kotak, adding “Bringing in InvITs in our scheme with the objective of optimising value for all stakeholders. Next step of evolution IL&FS group has gone into.”
The binding bids received for five road assets with a total debt of Rs 9,500 crore would be submitted to the committee of creditors and for nine assets with a total debt of Rs 10,800 crore alternate resolution options including InvIT will be considered, said N Sivaraman, COO, IL&FS.
The moratorium period helped in orderly resolution and the group has built a cash balance of `5,300 crore and recovered loans of Rs1,200 crore made to non-IL&FS entities.
Wage bill was reduced by 45 per cent and costs consolidated, the one-year progress report showed.
Debt resolution posed a big challenge with very high gearing of 17:1, SPVs financed by borrowings at the holding companies of Rs 5,300 crore.