Ltd controls a majority stake within the firm which will probably be taken over by KSSF, two individuals accustomed to the deal mentioned.
“KSSF is taking control of the project by settling the dues of this company through a one-time settlement. The deal is likely to be completed before the end of this month. Banks are taking about a 50% haircut in this deal,” one of many two individuals cited above mentioned. KSSF didn’t reply to an e mail searching for remark.
HKR Roadways had signed an settlement for 4 laning of the freeway beneath the public-private partnership beneath which it was granted a concession interval for 25 years together with 2.5 years of building interval. The venture began accumulating toll from June 1 2014.
“A part of the project is completed and toll is being collected but there are some issues with regards to land acquisition and a bridge over a river which has delayed full completion. The settlement by Kotak will help this project get up and running,” mentioned a second individual cited above.
Total debt owed by the corporate is about Rs 1500 crore and Kotak is settling by paying about Rs 750 crore. Gayatri Highways will stay a shareholder within the SPV however the majority stake will probably be with Kotak.
This the KSSF’s first deal within the roads sector. Last month im an interview to ET Srini Sriniwasan, MD of the $4.7 billion Kotak Investment Advisors (KIA) beneath with the $1 billion fund is managed, mentioned it plans to launch a $800 million infrastructure fund which can put money into tasks throughout India. KSSF expects to full 75% of its investments by December 2021, Sriniwasan had mentioned.