Stricken Indian infra developer invites proposals for US unit

14 January 2019 - 12:00 am UTC

Troubled Indian infrastructure group Infrastructure Leasing & Financial Services Ltd (IL&FS) has invited expressions of interest (EOI) for its US subsidiary, IIPL USA.

The Abu Dhabi Investment Authority and Japan’s Orix Corporation-backed IL&FS, which  is India’s largest infrastructure developer but since August has defaulted on multiple loan obligations, said on Monday (14 January) that it holds the stake in IIPL through ITNL International Pte. Ltd., Singapore.

IIPL provides infrastructure management, operations and maintenance of roads, highways, bridges, tolling systems, ITS and traffic signals in the state of Texas, the documents said.

Frontera Capital Advisors is running the EOI process the deadline for which is 21 January.

Incorporated in 2013, IIPL has undertaken over USD 20m in contracts with the Texas Department of Transportation for various services for the operations and maintenance of roads and bridges, a teaser for the company said. The unit is now servicing 13 contracts.

IIPL has fixed assets of USD 3.4m and approximately USD 6m in current contract revenues, the teaser said.

Separately, the Gujarat Metro Rail Corporation (GMRC) has terminated a contract awarded to IL&FS Engineering & Construction citing “slow progress,” IL&FS said in an exchange filing on Monday.

The INR 3.75bn contract was to build four stations and lay a 4.6-km viaduct for the metro project in Ahmedabad. GMRC has also decided to encash the bank guarantee given by IL&FS, the filing said.

IL&FS had total liabilities of INR 1trn (USD 14.2bn) as of 31 March. .

The company is seeking to sell its assets to meet its debt obligations. It has already announced the sale of its securities business, renewable energy portfolio and its road assets.


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