Comments
IVRCL is looking for new suitors for three tollways in Tamil Nadu after its long-pending deal with Tata Realty & Infrastructure Ltd (TRIL), a Tata Group entity, failed to materialise.
“The earlier deal with TRIL did not materialise as there was a delay in securing clearances from NHAI. Now, we are in talks with 2-3 investors for divestment of tollways in Tamil Nadu,” K Balarami Reddy, Joint Managing Director and CFO of IVRCL, told BusinessLine .
“Since we were banking on the earlier deal, we did not pursue other options. We hope to close it soon. This will help cut the debt burden from these tollways and free up equity,” he said.
The Hyderabad-based infrastructure company, which is grappling with a debt pile, had entered into a definitive sale agreement for divestment of its BOT projects — Salem Tollways, Kumarapalayam Tollways and IVRCL Chengapalli — in Tamil Nadu.
According to Reddy, “The sale consideration agreed for the divestment was lower than the carrying value of investment and outstanding advances by ₹338.77 crore. During the first quarter this fiscal year, the investor terminated the share purchase agreement and revoked the bank guarantee.”
Net worth erosionIVRCL posted a loss of ₹245 crore in Q1 and has accumulated losses of ₹2,428 crore. It has seen a substantial erosion of its net worth, and aggregate borrowings stand at ₹5,493 crore, with ₹1,915 crore due over the next 12 months.
Lenders had approved a corporate debt restructuring (CDR) scheme. But efforts to raise additional funds as a part of the CDR package through stake divestment did not come through.
The Joint Lenders’ Forum adopted a Strategic Debt Restructuring exercise, converting part of the debt into equity and paving the way for a majority shareholding of 51 per cent by lenders.
With its stake sale moves failing to make progress, the situation has become tougher for IVRCL. Its management, however, believes the lenders have been approached by a strategic investor.
While some creditors have initiated winding-up proceedings against IVRCL, it is also facing cases relating to the collapse of an under-construction flyover in Kolkata.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.