NEW DELHI: Debt-laden IL&FS Group has completed sale of its 35% stake in Warora Chandrapur Ballarpur Toll Road Ltd (WCBTRL) to its majority joint venture partner Vishvaraj Infrastructure Ltd. (VIL).
The sale entails VIL taking over entire external debt of WCBTRL amounting to ₹306 crore, providing equity value of over ₹12 crore and settling IL&FS's dues amounting to ₹6 crore.
As a result of the transaction, IL&FS will be able to resolve ₹324 crore worth of its overall group debt of ₹99,000 crore as of October 2018.
It has received requisite approvals from the committee of creditors of IL&FS Transportation Network Ltd (ITNL), National Company Law Tribunal, among others.
Key lenders to the project--Bank of India, Indian Overseas Bank and India Infrastructure Finance Company Ltd (IIFCL)--have approved the sale and change in ownership.
After the transaction, Vishvaraj Infrastructure and Diva Media will own 100% stake in WCBTRL.
As part of the resolution, the new board had earlier followed a public process to sell the group's minority stake in WCBTRL but it received no interest from buyers. Thereafter, majority partner, VIL, evinced interest in purchasing the stake.
Warora Chandrapur Ballarpur Toll Road was promoted by IL&FS Transportation Networks, an IL&FS subsidiary, with 35% while the balance 65% was held between Vishvaraj Infrastructure Limited and its associate company Diva Media Pvt Ltd.
WCBTRL built a four lane highway project connecting Warora, Chandrapur and Ballarpur traversing along 3 different highways of SH-264, SH-266 and SH-267 in Maharashtra. It has been built under Design-Build-Finance-Operate-Transfer (toll) model.
The 64 km project, developed at a cost of ₹689 crore, has concession validity till January 2041 granted by Public Works Department of Maharashtra government.
IL&FS Group has so far achieved an estimated debt resolution of over ₹52,000 crore, across completed sales, debt repayment, pending closures and court filings, while maintaining the overall debt resolution estimate at ₹61,000 crore.