IL&FS Says Taking Steps to Address Debt of Rs20,000 crore
Moneylife Digital Team 24 July 2019
Scam—hit Infrastructure Leasing & Financial Services (IL&FS) has said that its new board has taken key steps to addressed debt of more than Rs20,000 crore, which it feels represents a significant interim outcome in its resolution process. 
 
"The group has been focused on conserving its resources through multiple initiatives including expedited recoveries of loans made by the group, which will be used for discharging the creditors of the relevant companies in accordance with Resolution Framework filed with National Company Law Appellate Tribunal (NCLAT)," IL&FS says in a statement.
 
According to the release, a critical focus of IL&FS' new board has been to maintain a ‘going concern’ status for companies under the Group. It says, "Towards this, 55 companies were classified as ‘green’ which are servicing all their obligations. Further, measures have been taken for resolution of debt of three ‘amber’ companies, which are in final stages of implementation and will result in these companies being re-classified as ‘green'."
 
"Another key focus of the New Board has been to implement a group-wide asset monetization program. ORIX Japan has exercised its shareholder rights to purchase renewable energy assets for a value that would cover the entire debt of Rs3,800 crore and result in an equity release in excess of Rs500 crore for the group subject to NCLT approval. Sale process for assets under the education and roads verticals are at an advanced stage. Sale of environment verticals and real estate assets are making progress," IL&FS added.
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