The crisis-hit Infrastructure Leasing and Financial Services Ltd (IL&FS) has sought extension of bid validity for its five road projects faced with debts over Rs10,000 crore, as the validity of its existing bid expired.
The five projects are: Chenani Nashri Tunnel project (CNTL), Pune Solapur Road Development (PSRDCL), Jorbat Shillong Expressway Ltd (JSEL), Hazaribagh Ranchi Expressway (HREL) and Jharkhand Infrastructure Implementation Company (JIICL).
IL&FS had received time-bound binding bids for these five road projects, but the validity of those bids expired on February 29. The five projects have received bids totalling Rs7,489 crore, as against an aggregate debt of Rs 10,500 crore, as per an affidavit filed by the company before the National Company Law Appellate Tribunal.
Out of the five projects, the company recently got approval from lenders PSRDCL, JSEL and CNTL for bids totalling approximately Rs 6,250 crore. However, an expired validity may pose challenges in sale of these assets in the absence of an extension, even if lenders have approved the bids.
Also, HREL and JIICL are yet to get lenders’ approval, followed by approval from the National Company Law Tribunal before the letters of intent can be issued. "We are working with the bidders to get an extension of the bids and will follow the laid-out process for concluding the transaction on receipt of the extension," said an IL&FS spokesperson.
Out of the five road projects, Cube Highways has emerged as the highest bidder with Rs3,900 crore bid for CNTL with approximately Rs5,454 crore debt, while Autostade of Italy is the top bidder for PSRDCL project with a bid of Rs1,404 crore against its debt of Rs 1,925 crore.
Sekura Roads has made the highest bid for JSEL project at Rs 916 crore, against its total debt of Rs1,406 crore. According to the company’s NCLAT affidavit, the binding bids received for these five road SPVs was extended once, but the company was unable to complete its process of seeking lenders’ approval in time.