The National Company Law Tribunal (NCLT) has approved the sale of IL&FS’s Chennai Nashri Tunnelway to Cube Highways for Rs 60 billion. The deal’s execution and final approvals are still awaited. For secured lenders, recovery rates might be as high as 115 per cent.
According to the agreement, Cube would put out an initial offer of Rs 53 billion, with an extra Rs 4 billion set aside for external creditors and delay adjustments of Rs 3-4 billion, depending on the completion date. This transaction is the largest asset monetisation under the IL&FS umbrella and will address an additional Rs 25 billion of IL&FS Group debt, increasing the total debt addressed from Rs 430 billion to Rs 455 billion.