Cautious buyers stall debt-laden IL&FS's bid to sell subsidiaries

ITNL was expected to receive its dues from the NHAI for several completed road projects but the authority had sent these demands for arbitration

In the last few weeks, IL&FS directors met potential investors, trying to hard sell all key assets — from its swanky office building in Mumbai to its listed road construction company — to pare the debt worth Rs 910 billion by half. 

But the desperate bid failed as buyers turned cautious after group companies started defaulting on loans.

An offer was even made to sell the road construction company — IL&FS Transportation Networks Ltd (ITNL) — at zero equity value by IL&FS — provided its debt worth Rs 345 billion as on March 2018 is taken over by the buyer.