INSUBCONTINENT EXCLUSIVE:
(SPV) of ILFS are allowed to skip repayments to investors until bankruptcy courts resolve debt at infrastructure financier and its
repayments are stopped at those operating units
India Ratings and Crisil have rated bonds issued by five such companies - Jharkhand Road Projects Implementation Company, Hazaribagh Ranchi
Expressway Ltd, Jorbat Shillong Expressway, North Karnataka Expressway and West Gujarat Expressway.
Total outstanding bonds would be worth
Rs 3,300 crore for five SPVs, while bank loans could be in range Rs 15,000-20,000 crore for all such SPVs, showed market estimates by two
market sources that are involved in matter
There are about 330 such SPVs in ILFS group.
Ajim Premji Trust, Pioneer Independent Trust, Food Corporation of India, and Postal Life
Insurance Fund are some of investors in those SPVs, market sources said
a wholly-owned subsidiary of ILFS
National Company Law Appellate Tribunal (NCLAT) while claiming that its SPVs are entitled to a moratorium on repayments
The NCLAT extended a moratorium after giving initial relief until final hearing
The Ministry of Corporate Affairs filed an application with NCLAT after National Company Law Tribunal rejected application for a moratorium
to be named.
All operative companies will be hit due latest SPV move, said a senior executive
Based on available legal opinions, CRISIL understands that NCLAT order does not pose restrictions on regular debt servicing, rating agency
said in a report.
"Debt servicing on these bonds is not an issue
If you want your money back, it has a moratorium," said a senior manager at a fund house.
However, NCLAT made a reference to all such SPVs
