A resolution of Infrastructure Leasing & Financial Services’s (IL&FS) five road assets has been blocked by the committee of creditors (CoC).

The assets have a combined debt of more than Rs90bn ($1.2bn).

As the CoC put in several objections to the resolution process, there could be additional delays in recoveries.

The Economic Times quoted a source as saying: “The board has put voting by CoC in abeyance for these projects, pending National Company Law Tribunal (NCLT) approval.”

According to an affidavit by the board, out of the five sales of special-purpose entities (SPVs) of IL&FS Transportation Networks Limited (ITNL), voting had begun on four.

The affidavit added: “On account of concerns raised by the CoCs of the five SPVs, voting process has been put in abeyance.”

The board of IL&FS called in bids for 14 ITNL road verticals, out of which ten have received bids. However, the committee was formed only for five assets, reported The Economic Times. Sorry, there are no polls available at the moment.

These assets include Jharkhand Infrastructure Implementation Company (JIICL), Chenani Nashri Tunnelway, Jorabat Shillong Expressway, Hazaribagh Ranchi Expressway and Pune Sholapur Road Development (PSRDCL).

JIICL and PSRDCL have been marked as green and red companies respectively, while the other three have been classified as amber companies.

An industry source told The Economic Times that the primary objection from the lenders was on why IL&FS was proceeding with the sale process for group companies even while NCLT is yet to approve the resolution framework proposed by the board.

Bankruptcy laws need associated parties to be excluded from voting in CoC meetings, but the IL&FS entities were included and this was objected by the lenders.

Last June, IL&FS secured approval from the Indian Union Road Transport Ministry to restart a highway project in Bihar.

Meanwhile, the Indian Ministry of Road Transport and Highways immediately decided to relax FASTag Fee lanes for 30 days at 65 toll plazas of the National Highway Authority of India (NHAI).

Over the 30 days, these plazas can convert up to 25% of all fee lanes to hybrid (cash plus FASTag) lanes.

This move comes as NHAI raised concerns on high cash transactions at the 65 fee plazas.