Creditors of IL&FS Transportation Networks Ltd’s (ITNL) subsidiary, Barwa Adda Expressway Ltd (BAEL), have reached an agreement to restructure the toll company’s Rs 1,269 crore debt. This restructuring will help the creditors classify the account as standard, aiding in the recovery of their dues. The process of finalizing restructuring documents is underway, with the creditors aiming to complete it and record the recovery within the current quarter.
An IL&FS spokesperson confirmed that the restructuring of BAEL’s debt had been approved by its lenders, which include IFCI, Bank of Baroda, UCO Bank, and Acre ARC. BAEL was granted a 20-year concession in 2013 by the National Highways Authority of India (NHAI) for the widening and expansion of the Barwa-Adda-Panagarh section of NH-2. The project aimed to expand the stretch from 398 km to 521 km and include the Panagarh Bypass, covering areas in Jharkhand and West Bengal. The project is operational with toll booths on the stretch, and the revenue generated is held in an escrow account to service the debt. To date, BAEL has paid Rs 193 crore from the escrow account toward its Rs 900 crore sustainable debt. The restructuring plan includes the repayment of this debt in quarterly installments up to fiscal year 2032.
The restructuring also addresses Rs 369 crore of unsustainable debt, which will be backed by non-convertible debentures (NCDs). These NCDs will have a repayment schedule until March 2032, with an overall internal rate of return (IRR) of 8%. This restructuring structure ensures that enough funds remain in the escrow account to cover the immediate interest costs and ongoing maintenance requirements. This debt restructuring of BAEL is part of the larger resolution framework for IL&FS, which collapsed in 2018 with a total debt of nearly Rs 1 lakh crore. BAEL itself has been transferred to Roadstar Infra Investment Trust, marking a significant step in addressing the company’s financial challenges. The restructuring is expected to provide a stable financial path for the toll company, allowing it to continue servicing its debt and maintain operations through the remainder of its concession period.
