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).
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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.