On December 17 last year, IL&FS had invited EOIs for 19 of its road projects, four of which are still under construction, seven annuity projects and eight toll road projects. The last date for submission of bids was January 8, 2019.
IL&FS Transportation Networks (ITNL) on Monday said it has defaulted on repayments to holders of its non-convertible debentures (NCDs) worth Rs 450 crore. The default was on interest repayments to the tune of Rs 26.03 crore.
The company is believed to have been classified as a ‘red’ entity by lenders as it is unable to service its dues to any of its creditors. Other entities from the troubled IL&FS Group have been categorised as either ‘green’ entities — those which can service all financial obligations— or ‘amber’ entities, which can service their debts to secured creditors but not to others.
Earlier, ITNL had defaulted on debt worth Rs 17.9 crore, due in six separate repayments on October 29 and 30, 2018. ITNL, along with IL&FS Financial Services (IFIN) and IL&FS, is currently having its past ratings reviewed by Grant Thornton.
In its interim report, Grant Thornton had said that credit rating agencies (CRAs) seemed to have consistently given the companies good ratings over the years till July-August 2018, when they downgraded ITNL’s ratings for the first time after it defaulted on repayments to holders of its commercial papers.
The IL&FS Group, whose management is currently headed by Uday Kotak, had said in January this year that it has received a strong response with more than 30 expressions of interest for its domestic roads business housed under ITNL. On December 17 last year, IL&FS had invited EOIs for 19 of its road projects, four of which are still under construction, seven annuity projects and eight toll road projects. The last date for submission of bids was January 8, 2019.
FE had reported on November 23 that Lone Star Funds and Cube Highways had already made offers to purchase ITNL’s road projects while the previous management was still in charge of the company. Subsequently, the government-appointed board cancelled all agreements and launched a bid process for the assets.