Silver Point gets NCLT nod to take over IVRCL Chengapalli Tollways

Mumbai: A bankruptcy court has approved US-based hedge fund Silver Point Capital's application to acquire IVRCL Chengapalli Tollways through the insolvency process. The fund had submitted its bid through its principal vehicle SPCP Luxembourg Strategies SARL.

The successful bidder has proposed to pay over ₹1,464 crore to acquire the company through an insolvency process, against the total admitted liabilities of ₹1,513 crore.

"The resolution plan proposes to repay all stakeholders in full, including secured financial creditors," observed the division bench of Justice Telaprolu Rajani and a technical member, Charan Singh, in its order of May 1. "The plan value proposed by the successful resolution applicant is above the average fair value of the corporate debtor (IVRCL Chengapalli)."

Before the tribunal's order, the lender had also approved a revival plan submitted by SPCP Luxembourg Strategies with 100% voting in favour of it.

Last year in April, the Hyderabad bench of the National Company Law Tribunal (NCLT) had admitted IVRCL Chengapalli Tollways under the insolvency resolution process in an application filed by Assets Care & Reconstruction Enterprise (ACRE) and appointed Sutanu Sinha of BDO Restructuring & Advisory LLP as its resolution professional.

The company had originally borrowed from lenders including IDBI Bank, State Bank of India, Bank of Baroda, Union Bank of India, and Karur Vysya Bank. However, the lenders had assigned their debts to ACRE in 2021, after which they approached the tribunal.

In September 2010, the NHAI awarded IVRCL Chengapalli Tollways a contract to construct and strengthen the National Highway 47, which connects Chengapalli via Coimbatore to Walayar in the border area between Tamil Nadu and Kerala.

The original cost of the 54.83 km project was estimated at ₹1,123 crore, which increased to ₹1,235 crore after cost overruns.