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    IL&FS addresses aggregate debt of Rs 32,000 crore

    Synopsis

    The total debt of Rs 32,000 addressed comprises of Rs 21,600 crore of debt addressed basis cash balances and nearly Rs 10,300 crore of additional net recovery expected from resolution and restructuring applications filed with the National Company Law Tribunal at Mumbai and NCLAT, the approvals for which are awaited.

    IL&FS-1-reutersReuters
    Mumbai: Beleaguered infrastructure financier IL&FS on Friday said that the government constituted board and management has addressed aggregate debt of Rs 32,000 crore. The board also said that the group has estimated that it would address total 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 total debt of Rs 32,000 addressed comprises of Rs 21,600 crore of debt addressed basis cash balances and nearly Rs 10,300 crore of additional net recovery expected from resolution and restructuring applications filed with the National Company Law Tribunal at Mumbai and NCLAT, the approvals for which are awaited.

    “The aggregate debt of approximately Rs 32,000 crore addressed represents nearly 57% of the overall targeted recovery value of nearly Rs 56,300 crore and nearly 32% of the overall debt of over Rs 99,000 crore (as of October 2018),” IL&FS said in a statement.

    IL&FS has faced delays in its recovery timeline due to the impact of COVID-19. The pandemic has added time and logistical complexities in the process, affected valuations for certain assets, delayed receipt of approvals from key stakeholders, ILFS said.

    “This has also been compounded by delay in receipt of annuities and attrition of key managerial and operational personnel,” it added.

    The resolution and restructuring applications having total resolution value of over Rs 14,000 crore that have been filed with NCLT (Mumbai) and NCLAT, for final approvals, include Rs 7,550 crore for 3 road assets; Rs 4,900 crore for restructuring of ITPCL and Rs 1,370 crore towards settlement amounts to be received for two other road and highway assets.

    The capital market regulator and the competition commission have also given their nod to IL&FS to set up an infrastructure investment trust (InvIT) that would take over at least 10 road projects of the troubled infrastructure financier and help it resolve debt of nearly Rs 13,000 crore.

    Units of the proposed InvIT will be distributed among key lenders including State Bank of India, Punjab National Bank, Canara Bank, Bank of India and Indian Overseas Bank, people familiar with the development said.

    The group is expected to soon start the process of setting up a sponsor company for the InvIT under its subsidiary IL&FS Transportation Networks Limited (ITNL).


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