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    IL&FS puts corporate loans worth Rs 5,000 crore on the block

    Synopsis

    The deal will be on cash consideration basis with the beleaguered group seeking one consolidated bid for the entire portfolio. Applicants have to submit binding bids by next month.

    IL&FSAgencies
    IL&FS group has net liabilities of Rs 16,667 crore as on March 31, 2020 and is in breach of its conditions for holding a certificate of registration as an NBFC.
    IL&FS financial services arm IFIN has put NPA accounts of Essar Shipping, Reliance Naval & Engineering, Unitech, Parsvnath Developers, Ansal API among others on the block. Corporate loans of 70 companies worth Rs 5,000 crore have put been on the block and will be put through a bid process.

    The deal will be on cash consideration basis with the beleaguered group seeking one consolidated bid for the entire portfolio. Applicants have to submit binding bids by next month.

    IFIN is owed a principal amount of Rs 209 crores from Unitech Limited, Rs 174 crore from Parsvnath Developers, Rs 135 crore from Ansal Group, Rs 25 crore from Essar Shipping and Rs 5 crore from Reliance Naval.

    IFIN has assets under management of Rs 18,000 crore involving external and internal loans and investments, a bulk of those are non-performing.

    Meanwhile, IL&FS financial services returned in black with profits of Rs 188 crore at the end of March 2020 against a loss of Rs 13274 crore same period a year earlier.

    Total revenue from operations stood at Rs 374 crore as compared to Rs 275 crore reported a year ago.

    IL&FS also made recovery for bad loans leading to write-back of provisions worth are 163 crore. Though owing to the pandemic it had to consider additional impairment for loans outstanding loans as on March 31, 2020 totaling Rs 195.23 crore.

    IL&FS group has net liabilities of Rs 16,667 crore as on March 31, 2020 and is in breach of its conditions for holding a certificate of registration as an NBFC. The company’s ability to raise funds has been substantially impaired, with normal business operations being substantially curtailed, IL&FS said.

    There has been a resolution process run by the the government appointed IL&FS Board of Directors since October 2018 and the team aims to recover more than Rs 55,000 crore out the Rs 1 lakh crore owed to creditors.


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