MBL Infrastructures Ltd (MBL) has received approval from the Adjudicating Authority for its resolution plan concerning its wholly owned subsidiary, MBL(MP) Toll Road Company Ltd (MPTRCL), under the Insolvency and Bankruptcy Code, 2016. This development marks a significant step towards financial restructuring and debt resolution for the infrastructure company.

Key Points of the Resolution Plan

• Equity Infusion: MBL will inject Rs 9.11 crore as equity into MPTRCL.
• Existing Deposit: The equity infusion includes Rs 2 crore already deposited as Earnest Money Deposit (EMD) and Performance Security.
• Debt Settlement: The infused amount, along with MPTRCL's existing cash balances and liquid assets, will be used to settle dues with Punjab National Bank (International) Ltd (PNBIL).
• Settlement Timeline: Full and final settlement with PNBIL is to be completed within 30 days.
• Debt-Free Status: Post-settlement, all liabilities of MPTRCL will be extinguished, rendering it a debt-free company.

Management and Control

• The Board of Directors' powers for MPTRCL have been reinstated.
• Management control will now vest with the MPTRCL Board.

Financial Implications

• Future surplus from toll fees and receivables will be available to MBL.
• The exact amounts of these surpluses will be quantified and disclosed in due course.

Additional Details from LODR Disclosure

The LODR (Listing Obligations and Disclosure Requirements) disclosure provides further clarity on the resolution process:

• The resolution plan was approved by the Hon'ble Adjudicating Authority.
• PNBIL is identified as the sole secured financial creditor of MPTRCL.
• The settlement amount includes cash and bank balances, liquid assets such as Fixed Deposits, forfeiture amounts, and annuities accruals as of the reference date, net of CIRP (Corporate Insolvency Resolution Process) expenses.
• Post-settlement, neither MPTRCL and MBL will pursue claims against PNBIL, nor will PNBIL pursue any claims against them.

This resolution marks a crucial turning point for MBL Infrastructure and its subsidiary MPTRCL, potentially strengthening their financial position and operational capabilities in the infrastructure sector. The successful implementation of this plan could pave the way for improved performance and growth opportunities for both entities in the future.

MBL Infrastructure Ltd (MBL) has announced a significant development in its operations, securing a new order and setting ambitious targets for the future. The company, known for its expertise in civil engineering infrastructure projects, is making strides in expanding its project portfolio and improving its financial standing.

New Order Secured

MBL Infrastructure has been awarded a Change of Scope (CoS) order worth Rs 11.06 crore for construction work on the Bikaner-Suratgarh Section of NH-62 in Rajasthan. The scope of work includes:

• Construction of a junction
• Reconstruction and strengthening of service road
• Construction of two culverts

This project is being executed by Suratgarh Bikaner Toll Road Company Pvt Ltd (SBTRCPL), a wholly-owned subsidiary of MBL. SBTRCPL is already collecting toll on 170.266 km of National Highway, indicating the company's established presence in the region.

Ongoing Projects and Future Prospects

In addition to the newly secured order, MBL is currently working on another Change of Scope project valued at Rs 20.22 crore. This ongoing work involves the construction of a new bridge across the IGNP main canal.

Financial Outlook and Order Book

MBL Infrastructure has reported significant improvements in its financial position:

• All bank accounts of the company have been classified as 'Standard' by working capital consortium banks.
• These accounts have been transferred to the Corporate Client Group Vertical of banks.
• The company now has access to non-fund based working capital facilities (BGs/LCs) of Rs 303.63 crore.

Leveraging this improved financial standing, MBL has actively started bidding for new projects:

• The company has already bid for projects worth Rs 889.54 crore.
• MBL has set a target of procuring new orders worth Rs 1000 crore during the financial year 2025-26.

Management's Perspective

Mr. Anjanee Kumar Lakhotia, Chairman & Managing Director of MBL Infrastructure, expressed optimism about the company's future prospects. He stated, "With the availability of non-fund based working capital facilities of Rs 303.63 crores, the Company has started bidding for new projects and has already bidded for projects of Rs 889.54 crores. We have identified projects to be bidded so as to target procurement of new orders of Rs 1000 crores during the current financial year 2025-26."

Company Profile

MBL Infrastructure Ltd, established in 1995 and listed since 2010, specializes in the execution of civil engineering infrastructure projects. The company's areas of expertise include:

• Roads & Highways (Construction, BOT, O&M)
• Building, Housing & Urban Infrastructure
• Railways/Metro
• Other Infrastructure

MBL has a track record of executing projects across India, positioning itself as a significant player in the infrastructure development sector.

As MBL Infrastructure continues to secure new orders and improve its financial position, the company appears to be on a trajectory of growth and expansion in the infrastructure sector.