+
HKR Roadways: Kotak Special Situations Fund acquires 74% stake
ROADS & HIGHWAYS

HKR Roadways: Kotak Special Situations Fund acquires 74% stake

Kotak Special Situations Fund (KSSF) on Wednesday told the media it has acquired a 74% stake in HKR Roadways Ltd, and funded the debt in the company for a one-time settlement with existing lenders for a total consideration of Rs 715 crore.

The Andhra Pradesh Road Development Corporation awarded a 25-year concession to HKR Roadways, a special purpose vehicle owned by a consortium led by Gayatri Group.

The four-lane toll highway project of the existing Hyderabad-Karimnagar-Ramagundam section of state highway-1 (SH-1) was under design, build, finance, operate, and transfer (DBFOT).

The 207 km toll highway project began operations in June 2014. However, due to right-of-way delays and significant underperformance of traffic compared to initial estimates, the account became a non-performing asset (NPA) with all lenders.

The existing consortium of HKR's lenders has approved a one-time settlement of all outstanding debts, subject to a Swiss Challenge auction. Following the payment of outstanding debts, HKR Roadways will no longer be a non-performing asset (NPA).

This is KSSF's first successful funding and debt resolution in the road sector. HKR requires additional capital expenditures to reach the commercial operation date, and we anticipate a turnaround in the coming years. As and when the rules are notified, KSSF will continue to offer a full cash settlement, which is a much better option than non-cash options, and is fully prepared to fund pre-packaged solutions under IBC .

KSSF is a SEBI-regulated alternative investment fund managed by Kotak Investment Advisors Ltd (KIAL), a subsidiary of Kotak Mahindra Bank that focuses on alternative assets. KSSF currently manages a $1 billion fund in India with a mandate to invest in special situations, credit, and distressed assets.

Image Source


Also read: Kotak Special Situations Fund set to secure Rs 700 cr road deal

Also read: Kotak to launch $800 mn infra fund to invest in projects across India

Kotak Special Situations Fund (KSSF) on Wednesday told the media it has acquired a 74% stake in HKR Roadways Ltd, and funded the debt in the company for a one-time settlement with existing lenders for a total consideration of Rs 715 crore. The Andhra Pradesh Road Development Corporation awarded a 25-year concession to HKR Roadways, a special purpose vehicle owned by a consortium led by Gayatri Group. The four-lane toll highway project of the existing Hyderabad-Karimnagar-Ramagundam section of state highway-1 (SH-1) was under design, build, finance, operate, and transfer (DBFOT). The 207 km toll highway project began operations in June 2014. However, due to right-of-way delays and significant underperformance of traffic compared to initial estimates, the account became a non-performing asset (NPA) with all lenders. The existing consortium of HKR's lenders has approved a one-time settlement of all outstanding debts, subject to a Swiss Challenge auction. Following the payment of outstanding debts, HKR Roadways will no longer be a non-performing asset (NPA). This is KSSF's first successful funding and debt resolution in the road sector. HKR requires additional capital expenditures to reach the commercial operation date, and we anticipate a turnaround in the coming years. As and when the rules are notified, KSSF will continue to offer a full cash settlement, which is a much better option than non-cash options, and is fully prepared to fund pre-packaged solutions under IBC . KSSF is a SEBI-regulated alternative investment fund managed by Kotak Investment Advisors Ltd (KIAL), a subsidiary of Kotak Mahindra Bank that focuses on alternative assets. KSSF currently manages a $1 billion fund in India with a mandate to invest in special situations, credit, and distressed assets. Image SourceAlso read: Kotak Special Situations Fund set to secure Rs 700 cr road dealAlso read: Kotak to launch $800 mn infra fund to invest in projects across India

Related Stories

Gold Stories

Next Story
Infrastructure Transport

97 Per Cent Of Rongjeng-Mangsang-Adokgre Road Nears Completion

Deputy Chief Minister in-charge of public works Prestone Tynsong said in Shillong on 26 August that 97 per cent physical progress had been achieved on the ongoing Rongjeng-Mangsang-Adokgre road being constructed under the Non-Lapsable Central Pool of Resources (NLCPR). He noted the project was sanctioned in 2017 and that the stipulated time for completion had been 24 months from issue of the final work order. The deputy chief minister informed the assembly that the government had decided to include the remaining work under a World Bank project. In reply to a query from Rongjeng MLA Jim M Sangm..

Next Story
Infrastructure Transport

First TBM Starts Digging Five Point Three Kilometre Tunnel Under SGNP

The Goregaon-Mulund Link Road (GMLR) Phase three (B) project has reached a key milestone as the first tunnel boring machine (TBM) began excavation of the first of two tunnels beneath the Sanjay Gandhi National Park (SGNP). The machine, named Tulsi, started cutting a five point three kilometre bore that will link Dadasaheb Phalke Chitranagari in Goregaon East with Amar Nagar in Mulund West. Officials issued a statement noting the commencement of tunnelling work under the protected green belt. The twin tunnels are being constructed using mechanised tunnelling methods that aim to limit surface di..

Next Story
Infrastructure Transport

UP Approves Two Expressways And Rs 240 bn Infrastructure Push

The Uttar Pradesh Cabinet approved a series of infrastructure and industrial investment proposals totalling Rs 240 billion (Rs 240 bn), including two major expressway projects, a manufacturing and logistics cluster in Sultanpur and incentives for 11 industrial projects across the state. The decisions, taken at a meeting chaired by Chief Minister Yogi Adityanath, underline the state government’s focus on expanding road connectivity around emerging industrial hubs while attracting manufacturing investment to districts beyond major urban centres. The approvals cover both greenfield expressway c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code