Comments
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 the end of September this year.
It has also raised the estimate for overall debt recovery to ₹61,000 crore.
“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.
Sale of entities
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.
The ₹43,000 crore of debt addressed includes ₹26,800 crore of completed entity monetisation initiatives and accrued cash balance, ₹14,350 crore of additional net recovery expected from resolution and restructuring applications filed with NCLT, and ₹1,926 crore from Supreme Court verdict passed in favour of Rapid Metro Gurgaon.
IL&FS said that by September 2021 it expects to address about ₹8,000 crore of additional debt by initiatives, including monetisation of stake in ONGC Tripura, Warora Chandrapur and Karyavattom Stadium; Phase 2 of InvIT, including 5 Road SPVs; and receipt of expected settlement claims from road authorities for Khed Sinnar Expressway and Srinagar Sonmarg Tunnel.
Additional recovery
Post-September 2021, it expects additional recovery of over ₹9,950 crore.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.