IL&FS Transportation Networks will sell its wholly-owned subsidiary Jorabat Shillong Expressway to Sekura Roads for Rs 1,343 crore. Jorabat Shillong Expressway, a wholly-owned subsidiary of the bankrupt IL&FS Group, has entered into a restated share purchase agreement with Sekura Roads in this regard.
The proceeds from the sale will be used to settle its liabilities aggregating Rs 1,621 crore and the equity value under the deal is Re 1, a statement said, adding that the deal adjusts all of the liabilities at an enterprise value of Rs 1,343 crore.
The deal is expected to be completed by October 31.
Under the sale agreement, the creditors would get over 82 per cent of their exposure or Rs 1,343 crore in total from their total exposure of Rs 1,621 crore, the statement said.
Jorabat Shillong Expressway Ltd has been promoted by IL&FS Transportation Networks and Ramky Infrastructure Ltd as a Joint Venture Company. It is a four-lane highway from Jorabat to Shillong on NH-40, which connects Shillong, Mizoram and Tripura with Guwahati.
It can be noted that the IL&FS Group went belly up in end September 2018 and the government superseded its board after that under the chairmanship of Kotak group chairman Uday Kotak.
The new board has so far cleared a little over a third of the group’s Rs 99,000 crore debt to the banking and other financial sector entities as of September 2023.
It has identified close to Rs 62,000 crore of recoveries and payback to creditors, by selling assets.
