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Home >Companies >News >IL&FS roads InvIT set for launch
Settling and awarding dues to IL&FS is imperative as the group is struggling under a debt of 99,358 crore.aniruddha chowdhury/mint

IL&FS roads InvIT set for launch

In September, when the bankrupt infrastructure and financing major had issued its last update, the Uday Kotak-led board of directors had reported that only a fraction of the company’s outstanding debt of over Rs1 trillion had been resolved

MUMBAI: Infrastructure Leasing and Financial Services (IL&FS) will launch its infrastructure investment trust (InvIT) soon, wherein it will convert the debt owed to banks in 10 road projects into units of the trust. The InvIT has received all approvals for the launch, a source close to the development told Mint.

MUMBAI: Infrastructure Leasing and Financial Services (IL&FS) will launch its infrastructure investment trust (InvIT) soon, wherein it will convert the debt owed to banks in 10 road projects into units of the trust. The InvIT has received all approvals for the launch, a source close to the development told Mint.

“IL&FS has got the approval from its committee of creditors for its InvIT. It has also completed the green channel filing with the Competition Commission of India and obtained the final registration from the Securities and Exchange Board of India (Sebi). It will make a formal announcement soon," the person mentioned above said.

“IL&FS has got the approval from its committee of creditors for its InvIT. It has also completed the green channel filing with the Competition Commission of India and obtained the final registration from the Securities and Exchange Board of India (Sebi). It will make a formal announcement soon," the person mentioned above said.

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An IL&FS spokesperson confirmed the development.

The units of the InvIT are expected to be distributed to lenders, including State Bank of India, Punjab National Bank, Canara Bank, Bank of India, and Indian Overseas Bank. The company did not provide details on how the InvIT will be structured or listed.

In September, when the bankrupt infrastructure and financing major had issued its last update, the Uday Kotak-led board of directors had reported that only a fraction of the company’s outstanding debt of more than Rs1 trillion had been resolved.

The aggregate value of debt being addressed is pegged at Rs56,300 crore, the company said. Of this, more than Rs50,000 crore is likely to be addressed by March 2021.

The delay has been mainly "on account of the significant impact of covid-19, which has added time and logistical complexities in the process of completing discussions with stakeholders and in obtaining approvals from lenders, regulators, and judicial authorities", the company said.

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