A consortium of lenders led by Canara Financial institution has acquired a one-time settlement (OTS) provide of Rs 800 crore for dangerous loans value Rs 1,428 crore from street asset developer HKR Roadways. SBI Capital Markets has sought matching or larger bids for settlement of the corporate’s excellent loans.
In harassed belongings the place there are few different choices earlier than lenders, they’ve been taking the OTS path to exit the account. The method includes a name for different bids as public sector banks wish to keep away from being accused of malfeasance in taking substantial haircuts and handing again an organization to its promoters.
HKR Roadways is owned by Gayatri Highways and Megha Engineering Infrastructure, who maintain 37% every. DLF & Associates holds the remaining 26% stake, in keeping with a bid doc. As on November 1, 2019, HKR Roadways owed Canara Financial institution Rs 279 crore, Punjab Nationwide Financial institution Rs 281 crore, Union Financial institution of India Rs 323 crore, Indian Abroad Financial institution Rs 192 crore, IIFCL Rs 169 crore, Indian Financial institution Rs 94 crore and Financial institution of Baroda Rs 90 crore.
HKR Roadways is a particular function car integrated on August 9, 2010 for design, building, finance, operation and upkeep of four-laning of 206.858 km of the prevailing Hyderabad-Karimnagar-Ramagundam street (SH-1) in Telangana below design, construct, finance, function and switch (toll) foundation.
The corporate envisaged the venture price at Rs 2,209 crore, which was funded with a debt of Rs 1,525 crore, fairness of Rs 230 crore and grant of Rs 454 crore. The unique graduation of operations (COD) date of the venture was August 12, 2013. Nonetheless, resulting from delay in acquiring proper of approach approvals from railway authorities for over bridges and below bridges, the corporate approached the lenders to increase the COD. Based mostly on the requests,the lenders accepted the revision in COD to March 31, 2015.
The venture commenced toll assortment from June 1, 2014. Subsequently, the corporate accomplished a further stretch of 4.856 km, taking the full accomplished stretch size to 195.05 km. Publish the toll revision in June 2016, the corporate has been gathering consumer charge for the stretch of 195.05 km. “There was a big underperformance in site visitors and income vis-à-vis preliminary estimates from the primary 12 months of operations throughout varied car classes. The account has change into NPA with all lenders,” the bid doc stated.