Money & Banking

IL&FS: Aggregate debt recovery target hiked to ₹61,000 crore

Our Bureau Mumbai | Updated on April 15, 2021

Group addresses debt of ₹43,000 crore till date

About ₹43,000 crore of debt of bankrupt Infrastructure Leasing and Financial Services (IL&FS) has been addressed and the new board and management expects that this would increase to ₹50,000 crore by end of September this year.

“The group has also enhanced its estimates of aggregate debt recovery to ₹61,000 crore – an increase of ₹5,000 crore over its earlier estimate of ₹56,000 crore,” said Uday Kotak, Chairman of the board of IL&FS on Thursday.

The increased estimate represents resolution of nearly 62 per cent of overall fund based and non-fund based Group debt of about ₹99,000 crore, as of October 2018.

“The aggregate debt of ₹43,000 crore addressed till date represents nearly 71 per cent of the overall revised targeted recovery value of ₹61,000 crore and 44 per cent of the overall debt of over ₹99,000 crore (as of October 2018),” said a statement by IL&FS, adding that the recovery target is higher than the average recovery observed under IBC since its inception.

“The upgrade in potentially addressable debt by ₹5,000 crore (to ₹61,000 crore) has been largely on account of improved valuations, better operating performance and enhanced recoveries from non-group exposures,” it further said.

Of the total 347 entities under IL&FS Group (as of October 2018), a total of 186 entities stand resolved till date, while the remaining 161 entities are under various stages of resolution.

CS Rajan, MD, IL&FS, said that by September end, the number of entities would come down to double digits. This would be done by a combination of liquidation, closure of some entities and sale of some entities.

Published on April 15, 2021

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