Dentons Link Legal advised on the restructuring of the outstanding debt of over INR 20 billion of Pune Sholapur Road Development Company Limited (“PSRDCL“), under RBI’s Prudential Framework for Resolution of Stressed Assets and the Government of India (“GoI“) proposed IL&FS’ group Resolution Framework.
The scope, as Transaction Counsel for a consortium of 12 secured & unsecured lenders, included (i) structuring the Transaction and the Resolution plan under RBI’s Prudential Framework; (ii) assistance in transfer of PSRDCL to the Infrastructure Investment Trust (“InvIT“); (iii) assignment of IL&FS group lenders’ proportionate debt to the InvIT against allocation of InvIT Units; (iv) due diligence, drafting and finalization of Transaction documents; and (v) regulatory assistance in upgradation of the stressed account and reversal of Lenders’ provisioning of PSRDCL in terms of RBI regulations.
This Transaction marks the ‘first-of-its-kind’ debt restructuring undertaken as a part of IL&FS group debt resolution strategy of GoI for an overall debt of over INR 990 billion, whereby it was decided to monetize around 14 IL&FS’ portfolio road assets by transfer of same to a SEBI-registered InvIT – Roadstar Infra Investment Trust. Through the transfer of PSRDCL under the InvIT fold, the PSRDCL secured lenders will get full recovery of their dues, whilst the IL&FS group lenders will be issued InvIT units as settlements for their proportional outstanding debt.
Dentons Link Legal deal team was led by Milind Jha (Partner), and comprised of Aditya Bhardwaj (Partner), Shailender Sharma (Associate Partner) and Komal Kumar (Senior Associate).
This deal has been reported over the past across various national dailies:
- IL&FS transfers Pune Sholapur Road asset to Invit at enterprise value of Rs 2,000 cr | Company News – Business Standard (business-standard.com)
- IL&FS Group may add Pune Sholapur Road Development to proposed InvIT list – Construction Week India (constructionweekonline.in)
- IL&FS transfers Pune Sholapur Road asset to Invit at enterprise value of ₹2,000 cr | Mint (livemint.com)
- IL&FS transfers Pune Sholapur Road asset to Invit at of Rs 2,000 cr, ET Infra (indiatimes.com)
