Indebted IL&FS Gets Binding Bids For 10 Road Assets

Country's debt-laden Infrastructure Leasing & Financial Services Ltd (IL&FS) has received binding bids for 10 of its road assets, accounting for nearly a fifth of overall debt, the company said on Friday.

The road assets, which largely comprise highway projects across India and account for debt of more than Rs 17,700 crore ($2.48 billion), received 14 binding offers from multiple bidders.

IL&FS, a major infrastructure financing and construction company, collapsed late last year after a series of defaults that triggered fear of contagion in India's financial sector and forced the government to take control and overhaul its board.

Four of the 10 assets that received bids were under the "red" category, or companies which have the most trouble meeting their debt obligations.

IL&FS also said bankruptcy court had on Wednesday approved the sale of seven of its wind energy assets to Japan's Orix Corp for about Rs 593 crore. Orix would take over some Rs 3,700 crore in debt associated with the assets.

The bids for the road assets and the deal with Orix together address almost a quarter of IL&FS's total debt, the company said on Friday.