Lenders approve IL&FS's proposal to restructure `5,500 crore debt for CNTL

Mumbai: The lenders have approved IL&FS Group's proposal to restructure the Rs 5,500 crore debt of its subsidiary Chenani Nashri Tunnelway (CNTL), which offers almost full repayment

to them.

The move comes after the company has revalued itself at Rs 5,257 crore now after the deal with Cube Highways of Singapore failed last year, due to regulatory delays, for a consideration of Rs 3,900 crore.

The three-day voting opened on March 21 and saw the lenders favouring debt recast as it offers them 99 per cent of their money while unsecured lenders will get back 90 per cent.

The new proposal values the company at Rs 5,257 crore and will address Rs 4,910 crore of the IL&FS Group debt.

An IL&FS spokesperson confirmed the development, saying we have got the requisite approvals from the lenders to restructure the debt of CNTL.

The proposal entails CNTL converting itself into a green entity, with secured and unsecured lenders getting over 99 per cent and 90 per cent of the principal amount, respectively, upon implementation of the new proposal, a company official in the know of the development said.

CNTL is a wholly-owned subsidiary of ITNL (an IL&FS company) that jointly with its nominees holds 100 per cent equity. It has been classified as an amber company, which will now undergo a change in status.

The lenders will receive an upfront payment of around Rs 1,700 crore of the principal (they have already debited Rs 670 from the escrow account), in addition to interest accrual from April 2021, providing a benefit of around Rs 370 crore on implementation.

CNTL continues to maintain and operate the longest tunnel in J&K and is receiving an annuity of Rs 635 crore annually, which are being received on time.