IL&FS to Sell Road Assets Amid InvIT Transfer Hurdles

08 Nov 2023 CW Team

IL&FS had announced a plan to transfer nine operational road assets to InvITs, in an effort to stave off bankruptcy. However, the transfer process has been delayed due to regulatory approvals and procedural challenges faced by the company.

The company is now considering selling some of its road assets to generate funds and address its mounting debt. This move is seen as an alternative to the InvIT transfer, which has hit roadblocks.

IL&FS' plan to sell road assets comes as the company aims to streamline its operations and overcome its financial crisis. The company has been grappling with a mounting debt of over INR 90,000 crore ($12.6 billion), which has led to a default in payments and a downgrade in its credit ratings.

The sale of road assets would provide IL&FS with an immediate infusion of funds, enabling it to meet its debt obligations. This would be a critical step in the company's efforts to stabilize its financial position and regain investor confidence.

IL&FS has a significant portfolio of road projects across India, including several major highways and expressways. The potential sale of these assets is expected to attract interest from infrastructure developers and investors looking to expand their presence in the Indian market.

However, the sale of road assets might not be a straightforward process, as IL&FS will need to navigate various challenges. These challenges include regulatory hurdles, legal complexities, and pricing negotiations, among others.

IL&FS is in discussions with potential buyers for its road assets, including domestic and international investors. The company aims to strike deals that would provide the best value and maximize the recovery of funds.

The sale of road assets is part of IL&FS' broader plans to restructure its operations and repay its outstanding debts. The company is also exploring other options, including asset monetization, debt restructuring, and equity infusion.

As IL&FS continues its efforts to overcome its financial crisis, the sale of road assets could prove to be a crucial step towards its recovery. The company needs to address its debt burden and restore confidence in its operations to regain stability in the market.

Infrastructure Leasing & Financial Services (IL&FS) is considering the sale of some of its road assets as its planned transfer to Infrastructure Investment Trust (InvIT) faces hurdles. The company is looking to offload its road projects to tackle financial difficulties. IL&FS had announced a plan to transfer nine operational road assets to InvITs, in an effort to stave off bankruptcy. However, the transfer process has been delayed due to regulatory approvals and procedural challenges faced by the company. The company is now considering selling some of its road assets to generate funds and address its mounting debt. This move is seen as an alternative to the InvIT transfer, which has hit roadblocks. IL&FS' plan to sell road assets comes as the company aims to streamline its operations and overcome its financial crisis. The company has been grappling with a mounting debt of over INR 90,000 crore ($12.6 billion), which has led to a default in payments and a downgrade in its credit ratings. The sale of road assets would provide IL&FS with an immediate infusion of funds, enabling it to meet its debt obligations. This would be a critical step in the company's efforts to stabilize its financial position and regain investor confidence. IL&FS has a significant portfolio of road projects across India, including several major highways and expressways. The potential sale of these assets is expected to attract interest from infrastructure developers and investors looking to expand their presence in the Indian market. However, the sale of road assets might not be a straightforward process, as IL&FS will need to navigate various challenges. These challenges include regulatory hurdles, legal complexities, and pricing negotiations, among others. IL&FS is in discussions with potential buyers for its road assets, including domestic and international investors. The company aims to strike deals that would provide the best value and maximize the recovery of funds. The sale of road assets is part of IL&FS' broader plans to restructure its operations and repay its outstanding debts. The company is also exploring other options, including asset monetization, debt restructuring, and equity infusion. As IL&FS continues its efforts to overcome its financial crisis, the sale of road assets could prove to be a crucial step towards its recovery. The company needs to address its debt burden and restore confidence in its operations to regain stability in the market.