IL&FS Addresses Nearly Rs57,000 Crore Debt; Achieves over 93% of Aggregate Resolution Estimated at Rs61,000 Crore
IANS 13 December 2022
In its latest filing with NCLAT (national company law appellate tribunal), the new IL&FS (Infrastructure Leasing and Financial Services) board has said that the group has addressed approximately Rs56,943 crore debt in its ongoing resolution efforts till 30th September, up from Rs55,000 crore debt updated in March this year
The Group retained its overall resolution estimate at Rs61,000 crore, representing 62% of overall—fund based and non-fund based—debt of over Rs99,000 crore as of October 2018.
The debt addressed till date (Rs56,943 crore) represents over 93% of the overall estimated resolution value (Rs61,000 crore).
The Group said that Rs57,000 crore debt resolved till 30th September, includes: Rs43,089 crore of debt addressed across entities, including cash and Invit units; Rs7,254 crore of resolution that are approved by the courts and pending closure; Rs5,289 crore of resolution applications filed with courts and pending approval; and balance Rs1,331 crore of debt that has to be fully serviced across Green Entities
This overall resolution estimate of 62% is double the average recovery of 31% under IBC1.
"Public Interest Board formed by the Government, Immunity and Moratorium extended by court has helped IL&FS stay the course and perform better than peers under IBC. Interim Distribution has ensured payouts to all class of creditors midway during the resolution, giving them confidence on the process and progress" said IBC experts
The group has cash balances of Rs19,699 crore as a result of its resolution initiatives including expediting recoveries of loans and investment provided by IL&FS Group companies that will be used to discharge creditor claims of relevant companies.
IL&FS also said that of the total of Rs16,361 crore (including Rs11,296 crore of cash and Rs5,065 crore of Invit) approved by the courts towards interim distribution, the group has completed payout of Rs623 crore for Rapid Metro Gurgaon Limited and is at an advanced stage for paying Rapid Metro Gurgaon South Limited creditors (both IL&FS group companies).
The board has stated that interim distribution for IL&FS Financial Services (IFIN) and other remaining entities would be completed by this fiscal.
Of the 347 entities under IL&FS group as of October 2018, a total of 246 entities stand resolved leaving 101 entities—88 domestic and 13 offshore—to be resolved.
Citing challenges faced by the new board impeding the resolution, the board cited Failure to receive annuities in road projects from the government of Jharkhand and constraints in completing resolution of IL&FS Wind Energy SPVs to Orix, apart from huge pendency of approvals in courts delaying resolution.
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
2 years ago
it has been a long time since it started .These kind of frauds take such a long time to address and small investors are always at the receiving end and lawyers /coc and big creditors take majority of the chunk and small investors get very little amount.Something needs to be done to address this in the IBC.
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