TERMINATED TOLL PROJECT IN SOUTH INDIA
- The Project is a terminated toll road, with recovery predicated on claims of $438 Mn from NHAI.
- Recoveries expected were pretty strong, on account of
- The Project suffered primarily on account of NHAI default w.r.t its primary obligation of timely hand over of land, which it admitted and accepted at the level of the Hon’ble Supreme Court;
- The Independent Engineer evaluated all claims / counter claims and opined that NHAI should make a termination payment of $95 Mn.
- Investor purchased 38% of debt at deep discounts, at an investment of $7 Mn. iValue managed debt purchase which completed in Jun 2020.
- The claims have now been arbitrated and a unanimous award of $250 Mn has been pronounced.
- Assuming recovery only to the extent of face value, a recovery of $ 40 Mn is expected for the investor.
| Particulars | Details |
| Annual Toll | – |
| Termination Claims | $ 438 Mn |
| Claims/Debt | 4.25x |
| Equity | $ 31 Mn |
| Debt | $ 103 Mn |
| Interest Rate | 12.50% |
| Tenor Left | – |
