Total outstanding debt of fraud-hit Infrastructure Leasing and Financial Services Ltd (IL&FS) group is Rs99,354 crore and not Rs91,000 crore as being stated. This includes fund based outstanding principal of Rs94,216 crore and non-fund-based outstanding, including bank guarantees and letters of credit of Rs5,139 crore, says IL&FS group in its presentation.
In the fund-based dues, a total of Rs4,570 crore in principal outstanding includes Rs1233 crore towards Gujarat International Finance Tec-City (GIFT City) where IL&FS has 50% stake, and Rs3,337 crore towards ONGC Tripura Power Ltd, where the group has 26% stake.
IL&FS group has creditors across its different layers of subsidiaries. Out of its total outstanding of Rs94,216 crore to creditors, Rs73,359 crore are secured debt while rest Rs20,857 crore is unsecured debt, the company says.
Talking about the highly complex structure across the IL&FS group, its presentation admitted that the board requires time to comprehend, develop and implement resolution plans for these entities. Originally, there were 347 entities in the IL&FS group as identified by the new board. Out of this, 45 entities, including 42 foreign and three domestic units were closed, leaving the IL&FS group with 302 units that include 133 foreign and 169 domestic companies.
IL&FS group has maximum (160) number of subsidiaries in transportation, followed by energy sector with 35 and financial sector with 30 entities.
In addition, the IL&FS group has a complex holding structure with multiple layers. So far the new board has identified four layers in the group. IL&FS group has several wholly owned subsidiaries (WOS), subsidiaries with counterparties, including private and government, associate companies and joint ventures (JVs).
Its JV partners include ORIX Corp of Japan, which owns 23.54% stake in IL&FS, public sector units (PSUs) and several state governments as well as listed companies.
According to IL&FS presentation, the new board headed by Uday Kotak is appointing advisors and securing a moratorium order from third party actions for creating a calm period. "To protect stakeholder interests, we are developing a resolution framework for managing unprecedented group insolvency using the umbrella resolution approach that is built on principles analogous to IBC. This includes resolution plan for international entities, assessment of resolution options, kick starting and monitoring asset monetisation process, subject to approval from NCLT and supervision of Justice (retd) DK Jain," the copmany says.