NARCL makes binding bid for Essel Infra's road project debt
NARCL) has given a binding offer to lenders to acquire ₹988-crore debt of a road project awarded to Subhash Chandra's Essel Infraprojects in Ludhiana, said people with knowledge of the matter.
The government-backed asset reconstruction company has offered to acquire debt Ludhiana Talwandi Toll Road (LTTRPL), which is mandated to build a 78-kilometre four-lane stretch of the National Highway-95 between Ludhiana and Talwandi Bhai in Ferozepur district via Moga in Punjab.
NARCL offered ₹270 crore against the ₹988 crore debt, equating to a 27% recovery for lenders.
Lenders have invited counteroffers from other ARCs, according to a notice issued by process advisor, BoB Caps. The notice does not name NARCL as the anchor bidder.
Lenders have proposed to hold a Swiss challenge auction on April 19, wherein NARCL will have the first right to match a counteroffer.
The company's total debt to lenders is ₹988 crore, of which the principal debt is ₹543 crore. Punjab National Bank has a debt hold of ₹264 crore, Indian Overseas Bank at ₹210 crore, and Central Bank of India at ₹118 crore. Other lenders are Bank of Baroda, India Infrastructure Finance Company (IIFCL) and Canara Bank.
LTTRPL is a 74:26 joint venture between Essel Infraprojects and Pan India Network. In 2011, the National Highways Authority of India awarded LTTRPL the four-lane project on NH-95 with a mandate to complete the project by September 2014. NHAI signed a concession agreement for 29 years from the appointed date of March 26, 2012.
NARCL's offer is
