IL&FS addresses aggregate debt of Rs 32KCr so far

Debt-ridden IL&FS Group has addressed aggregate debt of around Rs 32,000 crore so far.

In a statement on Friday, the group said that it maintains its estimates of addressing aggregate debt of over Rs 56,000 crore by FY22, out of an overall debt of over Rs 99,000 crore (as of October 2018).

“The Management and the New Board of IL&FS Limited, as part of its quarterly update on the progress of ongoing Group resolution process, shared that it has as of date, addressed approximately Rs 32,000 crore of aggregate debt of the group,” it said

The aggregate debt of Rs 32,000 addressed comprises around Rs 21,600 crore of debt addressed basis cash balances and around Rs 10,300 crore of additional net recovery expected from resolution and restructuring applications filed with the NCLT (Mumbai) and NCLAT, the approvals for which are awaited.

The aggregate debt of approx. Rs 32,000 crore addressed represents nearly 57 per cent of the overall targeted recovery value of approx. Rs 56,300 crore and nearly 32 per cent of the overall debt of over Rs 99,000 crore (as of October 2018).

The debt addressed basis cash balances increased by around Rs 2,500 crore since September 30, 2020, mainly on account of receipt of settlement amount by IL&FS Solar Power (ISPL) for around Rs 780 crore, receipt of the tariff payments from the discom by IL&FS Tamil Nadu Power (ITPCL) for around Rs 1,190 crore, and Rs 300 crore recoveries in IL&FS Financial Services Limited (IFIN) from borrowers outside the IL&FS Group.

The resolution and restructuring applications, having gross resolution value of over Rs 14,000 crore, that have been filed with the NCLT (Mumbai) and NCLAT, for final approvals, include, Rs 7,550 crore for 3 road assets (Chenani Nashri Tunnelway Limited, Jorabat Shillong Expressway Limited, and Chongqing Yuhe Expressway Company Limited), Rs 4,900 crore for restructuring of ITPCL, Rs 1,370 crore towards settlement amounts to be received by Kiratpur Ner Chowk Expressway Limited and Fagne Songarh.

The statement also noted that the group faced some delays in moving ahead on the resolution mainly on account of significant impact of COVID-19, which has added time and logistical complexities in the process, affected valuations for certain assets, delayed receipt of approvals from key stakeholders. This has also been compounded by delay in receipt of annuities and attrition of key managerial and operational personnel, it said.