Economy

PFS clears resolution plan of IL&FS Tamil Nadu Power Co

Our Bureau New Delhi | Updated on January 04, 2021 Published on January 04, 2021

PTC India Financial Services (PFS) has approved resolution on one of its stressed loan account — IL&FS Tamil Nadu Power Company for its 2x600 MW imported coal based thermal power project at Cuddalore.

As per the RBI circular dated June 7, 2019 and directives of NCLAT, the resolution plan has been approved by PFS in line with lead bank — Punjab National Bank.

The basic features of restructuring plan include sustainable portion (59.38 per cent) of ₹125.91 crore — proposed to be repaid in 70 structured quarterly instalments starting from December 2020 quarter till March 2038.

For the unsustainable portion (40.62 per cent) of ₹86.14 crore, it has been proposed that 0.001 per cent NCD would be allotted to senior secured lenders and the same shall be redeemed in two annual instalments of 50 per cent each in FY 2039 and FY 2040, a PFS release said.

There will also be reversal of interest on unsustainable portion and reversal of differential interest on sustainable portion taking approved rate of interest of 8 per cent as per the resolution plan (RP).

Post approval of the RP from NCLT/NCLAT, the loan account will be classified under “Green” category from “Amber” category, the release added.

Out of the total outstanding of ₹224.95 crore (principal ₹183.84 crore and interest of ₹41.11 crore), PFS had already made provisioning of ₹66.39 crore as on period ended September 30, 2020.

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Published on January 04, 2021
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