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Cube Highways & Infrastructure is weeks away from buying a road asset of a bankrupt company, a first-of-its kind purchase that could free up about $4.5 billion worth of stressed projects.
The Singapore-based firm — backed by investors including the World Bank’s financial arm, Abu Dhabi Investment Authority and I Squared Capital — is using a novel method called ‘substitution,’ where lenders to insolvent Lanco Infratech are directly transferring Lanco’s road assets to Cube, without routing ownership through the state-run National Highways Authority of India.
Lanco is in bankruptcy court and unable to service its debt. “All lenders have agreed and the
