Infrastructure Leasing and Financial Services (IL&FS) said it has resolved ₹52,200 crore of debt so far and will achieve total resolution of ₹61,000 crore out of ₹99,000 crore.
This was shared by the new board and management of IL&FS as part of their periodic updates on the progress of the IL&FS group resolution process.
IL&FS Chairman Uday Kotak said, “We will be able to achieve 62 per cent of the loan recovery. “This overall resolution estimate is significantly higher than the average recovery observed under IBC 2016 since its inception. Ours was the most complicated resolution and still has a long tail,” he said.
He said that the debt of ₹52,200 crore addressed so far is 86% of the total estimated resolution value of ₹61,000 crore and 53% of the total loan.
The group estimates that it will be able to resolve the debt of around ₹57,000 crore by March. So far, ₹52,200 crore debt has been resolved, of which ₹14,100 crore has been repaid; Available cash balance ₹16,700 crore; ₹13,200 crore from closure of pending transactions due to court-approved cases and documentation and other closing requirements; and the remaining ₹ 8,200 crore from applications filed in courts, which are pending for approval.
Mr Kotak said that as of October 2018, 235 entities out of 347 entities under the IL&FS group have been resolved, including resolution applications filed in courts, and applications for an additional 15 entities are expected to be filed in courts by March 2022. have hope.
He said the group has projected the resolution of the remaining debt of Rs 4,000 crore across 97 entities to go beyond March 2022 thus achieving its total debt resolution estimate of ₹61,000 crore.
₹1,000 crore more debt has been resolved so far than the previous estimates.
Since the last update in July, the group has addressed an additional ₹8,500 crore of debt from monetization initiatives including: InvIT Phase 1; Terrasys Technology (erstwhile IL&FS Technologies); ONGC Tripura Gas Based Power Project; Warora Chandrapur Road Project and IL&FS Prime Terminal Fujairah.
In addition, the group has also submitted an application with the NCLT, seeking approval for transfer of 5 road projects with an estimated resolution value of Rs 4,000 crore under Phase 2 of InvIT and external non-conformity projects of IFIN. Initiated the process of sale of executed loan portfolio. Around ₹4,300 crore under the Swiss Challenge method.
Management also said that the selection and finalization of H1 bidder for TIFC real estate property sale process (IL&FS Headquarters in Mumbai) is also underway.
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