ICRA downgrades L&T Halol Shamlaji Tollways following default on Rs 1,014-cr loan

Assigns ICRA D rating, indicating junk category

ICRA has downgraded outstanding rating of L&T Halol Shamlaji Tollways Limited from ICRA BB ++ to ICRA D indicating junk category. L&T Halol Shamlaji Tollway is a 100% special purpose vehicle promoted by L&T Infrastructure Development Project.

While the total amount rated is Rs 1,014.9 crore, which is the oustanding term loans from the lenders, the amount due for payment in August was 12 crore. The company had repaid Rs 5.4 crore by the due date. However, ICRA said, as mentioned in the earlier rationale, funds have been infused by L&T IDPL subsequently and there are currently no dues outstanding to the lenders.

 

The SPV has mandated to carry out four laning of 173 km from Halol to Shamlaji in Gujarat. The project road is a part of State Highway-5 which starts at Vapi and runs through the eastern part of Gujarat.

Meanwhile, L&T in a communication to Bombay Stock Exchange said that  loans availed by the two SPVs promoted by L&T Infrastructure Development Projects Limited are without recourse to either L&T Infrastructure Development Projects Limited or to Larsen & Toubro Limited. The defaults have occurred primarily out of failure of the respective concession authorities in meeting certain of their obligations under the respective concession agreements.