Investment in an operating Annuity Project in Eastern India
Investment in an operating Annuity Project in Eastern India
Key Highlights –
- IVALUE IS PROJECT MANAGING ALL CONTRACTUAL ISSUES, ~USD 50 MN OF BALANCE CONSTRUCTION WORKS AS WELL AS THE OPERATIONS & MAINTENANCE OF THE OPERATING PORTIONS OF THE HIGHWAY
- INVESTOR HAS REPATRIATED USD 50 MN TILL DATE AND IS EXPECTING TO RECOVER ~3x ON INVESTED AMOUNTS
An operating annuity asset was in financial stress and was struggling with the following challenges:
- Revenue locked up due to Promoter Default = $ 385 Mn
- Withheld Annuities = $ 50 Mn
- Balance Annuities = $ 90 Mn
- Missed Annuities = $ 85 Mn
- Claims on NHAI = $ 160 Mn
- Pending last mile works = $ 45 Mn
Investor purchased 82% of debt (discount of 50% and investment of $ 62 Mn). iValue managed the entire debt purchase which was completed in March 2020.
iValue has since managed the investment and taken control of the entire project enterprise for the Investor under CIRP with debt resized to $ 112 Mn. iValue has further resolved contractual and balance works issues as follows:
- Withheld Annuities released = $ 50 Mn
- Regular Annuities released = $ 30 Mn
- Missed Annuities & other Claims certification ongoing = $ 240 Mn
- Balance works = completion likely in FY 2024
| Authority | NHAI |
| Mode | BOT (Annuity) |
| Length | 63 Km / 4 Lanes |
| No. of Toll Plazas | 1 no. |
| Provisional Completion | September 2016 |
| Concession Period | 15 years |
| Concession End | August 2025 |
| Revenue (Annuity Amount) | $ 24 Mn |
Clients:
NHAI
Category:
project
Date:
September 2016
