Infrastructure India gets two more months – Infrastructure India says that, since it announced in its interim results that forecasts indicated that the company did not have sufficient cash reserves to meet creditors as they fall due beyond January 2022, it has agreed with certain creditors that they will withhold demanding payment for invoices falling due in January until at least March 2022.
This provides the company with a cash runway to the end of February 2022 to source the funding required to ensure the group has adequate funding to continue to meet liabilities as they fall due.
To realise funds within the short term, management continues its advanced discussions with regard to the sale of IEL (the power generation business). Infrastructure India has received a Letter of Intent signed by a third party with respect to the sale of IEL and documentation is currently being negotiated.
They say that, while the sale will likely occur at a discount to the most recently stated NAV, the proceeds will provide more room to pursue the monetisation of other assets, in particular through the partial or complete sale of DLI (the logistics division)
IIP : Infrastructure India gets two more months