Infrastructure Leasing and Financial Services (IL&FS) which is currently in troubled waters, has decided to sell its Chinese road asset for nearly Rs 2,074 crore to PingAn Insurance (Group) Company of China according to an Economic Times report.
The group has received the approval of the Supreme Court for the move that will help resolve the company's debt worth Rs 2,500 crore. PingAn Group, one of the largest financial services companies in the world, emerged the highest bidder with $281 million for 100% stake in the Chongqing Yuhe Expressway Co Ltd (CYEC), the Chinese road asset of IL&FS.
CYEC holds and operates a concession for a toll-based expressway of approximately 58.72 km in Mainland China till 2032. The company has the right to collect toll from users and concessions from the Chinese government for the remaining period of the term.
Justice D K Jain, appointed by the court to oversee IL&FS resolution process, recently approved the sale of the Chenani Nashri Tunnelway Limited to Cube Highways addressing Rs 4,910 crore debt and the Jorbat Shillong Expressway Limited to Sekura Roads addressing Rs 1,600 crore debt. These three moves will address Rs 9,000 crore debt in total, subject to the approval from the National Company Law Tribunal and other regulatory approvals.
The new board of IL&FS has maintained it will address the overall debt of Rs 50,000 crore by end of this fiscal.