August 30, 2019 / 4:18 PM / 19 days ago

India's indebted IL&FS gets binding bids for 10 road assets

BENGALURU, Aug 30 (Reuters) - India’s debt-laden Infrastructure Leasing & Financial Services Ltd (IL&FS) has received binding bids for 10 of its road assets, accounting for nearly a fifth of overall debt, the company said on Friday.

The road assets, which largely comprise highway projects across India and account for debt of more than 177 billion rupees ($2.48 billion), received 14 binding offers from multiple bidders.

IL&FS, a major infrastructure financing and construction company, collapsed late last year after a series of defaults that triggered fear of contagion in India’s financial sector and forced the government to take control and overhaul its board.

Four of the 10 assets that received bids were under the “red” category, or companies which have the most trouble meeting their debt obligations.

IL&FS also said India’s bankruptcy court had on Wednesday approved the sale of seven of its wind energy assets to Japan’s Orix Corp for about 5.93 billion rupees. Orix would take over some 37 billion rupees in debt associated with the assets.

The bids for the road assets and the deal with Orix together address almost a quarter of IL&FS’s total debt, the company said on Friday. ($1 = 71.4920 Indian rupees) (Reporting by Sachin Ravikumar; Editing by Shailesh Kuber)

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