Crisis-hit Infrastructure Leasing & Financial Services (IL&FS) says the group has addressed a debt worth about Rs32,000 crore as of date.
In a statement, IL&FS says, "The aggregate debt of Rs32,000 crore addressed comprises around Rs21,600 crore of debt addressed basis cash balances and about Rs10,300 crore of additional net recovery expected from resolution and restructuring applications filed with the Mumbai bench of National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT), the approvals for which are awaited."
The management and the new board of the group maintains its estimates of addressing aggregate debt of over Rs56,000 crore by FY22, out of an overall debt of over Rs99,000 crore as of October 2018.
According to the statement the aggregate debt of Rs32,000 crore addressed represents nearly 57% of the overall targeted recovery value of about Rs56,300 crore and nearly 32% of its overall debt.
"The debt addressed basis cash balances increased by around Rs2,500 crore since 30 September 2020, mainly due to receipt of settlement amount by IL&FS Solar Power (ISPL) for about Rs780 crore; receipt of the tariff payments from the discom by IL&FS Tamil Nadu Power (ITPCL) worth Rs1,190 crore, and Rs300 crore recoveries in IL&FS Financial Services Ltd (IFIN) from borrowers outside the IL&FS group," the group says.
IL&FS says, the resolution and restructuring applications, having gross resolution value of over Rs14,000 crore that have been filed with the NCLT (Mumbai) and NCLAT, for final approvals, include, Rs7,550 crore for three road assets (Chenani Nashri Tunnelway Ltd, Jorabat Shillong Expressway Ltd, and Chongqing Yuhe Expressway Company Ltd), Rs4,900 crore for restructuring of ITPCL; Rs1,370 crore towards settlement amounts to be received by Kiratpur Ner Chowk Expressway Limited and Fagne Songarh Expressway Ltd pursuant to termination of the relevant concession agreements; and Rs200 crore for environment and real estate entities.
According to the group since October 2020, it has made significant progress across various resolution initiatives. This includes, obtaining SEBI registration certificate, requisite approval from the ITNL committee of creditors (COC) for transfer of the phase 1 assets; and completing the “green channel notification” for CCI approval process for the InvIT that represents potential overall resolution value of nearly Rs13,000 crore. IL&FS also obtained COC approval for H1 bid for sale of Terracis Technologies Ltd, which it says represents a recovery value of nearly Rs1,200 crore. It also completed bidding process for IL&FS group’s stake in ONGC Tripura Power Co with aggregate recovery value of over Rs3,800 crore, sale of CPG BPM and launching the sale process of IFIN’s external non-performing loan (NPL) portfolio of around Rs4,700 crore.
However, IL&FS says it faced some delays in moving ahead on the resolution mainly due to significant impact of COVID-19, which has added time and logistical complexities in the process, affected valuations for certain assets, and 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 added.