KSSF acquires 74% stake in HKR Roadways

Kotak Special Situations Fund (KSSF) on Wednesday announced it has acquired 74 per cent stake in HKR Roadways (HKR) and has funded the debt in the company for a one-time settlement with existing lenders for ₹715 crore.

“This successful funding and resolution of debt is the first one in the road sector for KSSF,” it said in a statement.

HKR, a special purpose vehicle owned by a consortium led by Gayatri Group, was awarded a 25 years concession by the Andhra Pradesh Road Development Corporation (now Telangana government).

Also read: KSSF invests ₹410 crore in DCW Ltd

The 207 km toll highway project commenced operations from June 2014 but the account became non-performing with all lenders due to delays in the right of way and significant under performance of traffic vis-à-vis initial estimates.

“The existing consortium of lenders to HKR has sanctioned a OTS of all the dues, subject to a Swiss Challenge Auction,” the statement said.

Post settlement of dues, HKR will no longer be an NPA account.

“HKR requires additional capex to achieve commercial operation date and we expect a turnaround in the next few years,” said Eshwar Karra, CEO-Kotak Special Situations Fund, KIAL. “KSSF will continue to offer a full cash settlement, a much better option than non-cash options and is fully geared to fund pre-packaged solutions under IBC, as and when the rules are notified,” Karra further said.

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