The lenders of three group entities have a debt burden of Rs 5,071 crore.
New Delhi: Crisis-hit IL&FS on Monday said it has entered into an agreement with secured lenders of three group entities, that have a debt burden of Rs 5,071 crore, as part of resolution process.
Binding term sheet has been signed with secured lenders of three entities -- Moradabad Bareilly Expressway Ltd, Jharkhand Road Projects and West Gujarat Expressway Ltd.
This move is in line with the current management's efforts to monetise assets and would also help in repaying debt to mutual funds.
"Total debt across these three entities is approximately Rs 5,071 crore -- Rs 3,242 crore from secured lenders and Rs 1,829 crore from unsecured lenders," a release said.
The revised proposal involves certain concessions and modification of terms of financial debt availed by these entities from lenders.
The release of cash flow from existing accounts will be used for servicing financial and operational creditors, reduction in debt service coverage ratio requirement; utilisation of surplus cash and preference to secured lenders over unsecured lenders in case of a shortfall, it added.
The major secured lenders of Moradabad Bareilly Expressway Ltd include India Infra Debt Ltd, L&T Infrastructure Finance Company, L&T Finance, L&T Infra Debt Fund, Bank of Baroda and Bank of India. The overall debt is around Rs 1,567 crore.
Jharkhand Road Project is undertaking developments of five projects. India Infra Debt Ltd, L&T Infra Debt Fund, Aditya Birla Sun Life Mutual Fund, Aditya Birla Health Insurance and Capital Asset Fund are among the major secured lenders. The aggregate debt is around Rs 1,545 crore.
According to the release, West Gujarat Expressway has been awarded road project in Gujarat and its major secured lenders include L&T Infrastructure Finance Company and L&T Infra Debt Fund with debt of about Rs 129 crore.
With the term sheet, the three entities have been moved from amber to green category.
As part of the resolution efforts, the group companies have been classified into three categories, mainly based on their financial positions -- green, amber and red.