Federal Bank recovered about 75 paise at Re 1 by selling its Rs 212.63 crore loan to Asset Care and Reconstruction Enterprise (ACRE), people said. The transaction closed earlier this week, one of them said.
Cube Highways had offered Rs 3,900 crore, leading to a recovery of around 82% for the lenders. But the long moratorium date of the settlement expired on August 30 this year, prompting the private bank to consider an out-of-court settlement. The second person said that Cube Highways had offered 100% recovery of debt for secured creditors and 40% for unsecured creditors. Federal Bank and ACRE did not respond to ET’s requests for comment.
Chenani Nashri Tunnelway, now named as Dr Shyama Prasad Mukherjee Tunnel, is India’s longest at 9.28 km and is located on National Highway 44. This reduces the travel distance between Jammu and Kashmir by 30 km. The tunnel was opened for public use in March 2017 and has been receiving a semi-annual annuity of Rs 635 crore from the National Highways Authority of India (NHAI) since then. State-run NHAI has awarded ITNL with half-yearly annuity till 2037.
According to a document seen by ET, CNTL’s project cost was pegged at Rs 5,454 crore, with ITNL providing equity of Rs 372 crore and banks providing loans of Rs 4,765 crore.