ITNL Offshore gives creditor update on IL&FS-guaranteed 7½% notes

By Marisa Wong

Los Angeles, Aug. 21 – ITNL Offshore Pte. Ltd. issued a creditor update relating to its RMB 1 billion 7½% notes due 2021 (ISIN: HK0000389657) guaranteed by IL&FS Transportation Networks Ltd., according to a company announcement on Monday.

ITNL Offshore is administering the liquidation of ITNL International Pte. Ltd., a related party and a debtor of ITNL Offshore. The debtor amount on record is about $110 million plus accrued interest.

ITNL International successfully realized cash assets totaling around S$69 million on Aug. 11. These recoveries are in line with previous estimates and is not expected to materially change the estimated return to creditors of ITNL Offshore.

ITNL Offshore previously communicated a dividend rate of less than 30%. The company said that creditors should note that this is a preliminary estimation and remains subject to change if the existing wind-down plan or milestones need to change.

The key focus of the ITNL International liquidation is in sequence, among other things, to

• Realize shares held in a Vietnam subsidiary. This is expected to conclude in Q3 2023, assuming alignment can be reached with stakeholders;

• Ensuring all tax returns are up to date and seeking tax clearance in order to facilitate the distribution to creditors in due course; and

• Quantifying the ITNL Offshore claim, adjudicating all creditors’ claims and commencing the dividend process.

The timeline for ITNL International’s distribution to its creditors including ITNL Offshore depends on how soon the above matters can be resolved. The company is aiming for this distribution to happen in late 2023 or Q1 2024.

ITNL Offshore said it will provide further update on the ITNL International liquidation in due course.

IL&FS is a surface transportation infrastructure company based in Mumbai.

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