IL&FS moves NCLAT over consent delays for transfer of assets to InvIT

Mumbai: The IL&FS board has filed an application with the appellate tribunal (NCLAT) against several lenders, including IFCI, IIFCL, BoB, SBI, PNB, Indian Bank, and the government of Jharkhand for "undue delays" in obtaining consent for the transfer of ₹5,500 crore worth of road assets to Infrastructure Investment Trust (InvIT).

Under the resolution framework, the company management had approved the transfer of four road assets (BKEL, BAEL, JIICL, and JRPICL) to the InvIT of ₹5,500 crore, though lenders have been slow in approving the restructuring proposals for these assets.

As per the resolution framework the company proposed to transfer these four road assets to InvIT at enterprise values (EV) of nearly ₹5,500 crore - Jharkhand Infrastructure Implementation Company Limited at ₹793 crore as against total liabilities of ₹586 crore, Barwa Adda Expressway Limited (BAEL) at ₹1,817 crore against liabilities of ₹2,577 crore, Baleshwar Kharagpur Expressway Limited (BKEL) at ₹868 crore against liabilities of ₹647 crore and Jharkhand Road Projects Implementation Company Limited (JRPICL) at EV of ₹1,987 crore against same amount of liability.


"New board is facing challenges and inordinate delays with regards to transfer of a few road assets into InvIT - that forms a substantial mode of resolution approved under ILFS resolution framework," said an IL&FS spokesperson. "We have sought direction from NCLAT so that process can be expedited, delays eliminated, and desired resolution can be achieved." For BAEL, 3 out of 5 lenders holding loans worth ₹1,269 crore have approved the restructuring proposal. IFCI intends to exit exposure to the project, but InvIT has offered to take over IFCI's loan exposure.