Infrastructure Leasing & Financial Services (IL&FS) said it had so far addressed ₹52,200 crore debt and would achieve an aggregate resolution of ₹61,000 crore out of the total debt of ₹99,000 crore.
This was shared by the new board and management of IL&FS, as part of its periodic update on the progress of the ongoing IL&FS Group resolution process.
“We will be able to achieve 62% of debt recovery,” said Uday Kotak, chairman, IL&FS. “This overall resolution estimate is significantly higher than the average recovery observed under IBC 2016, since its inception. Ours was a most complicated resolution and there is still a long tail,” he added.
He said the debt of ₹52,200 crore addressed till date represented 86% of the overall estimated resolution value of ₹61,000 crore and 53% of total debt.
The Group estimates it would resolve about ₹57,000 crore of debt by March. Debt of ₹52,200 crore has been addressed so far, comprising ₹14,100 crore of debt discharged; available cash balance of ₹16,700 crore; ₹13,200 crore from cases approved by the courts and pending transaction closure on account of documentation and other closing requirements; and balance ₹8,200 crore from applications filed with courts, which are pending approval.
Mr. Kotak said of the 347 entities under IL&FS Group as of October 2018, 235 entities stood resolved, including resolution applications filed with courts, and applications for additional 15 entities are expected to be filed with courts by March 2022.
He said the Group estimated resolution of the remaining debt about ₹4,000 crore across 97 entities to move beyond March 2022 and thus achieve its overall debt resolution estimate of ₹61,000 crore.
Compared with previous estimates, ₹1,000 crore more debt had been addressed till date.
Since the last update in July, the Group has addressed additional debt of ₹8,500 crore from monetisation initiatives including: InvIT Phase 1; Terracis Technology (erstwhile IL&FS Technologies); ONGC Tripura Gas-based power project; Warora Chandrapur Road project and IL&FS Prime Terminals Fujairah.
In addition, the Group has also submitted an application with NCLT seeking approval for transfer of 5 Road projects, with approximate resolution value of ₹4,000 crore, under Phase 2 of the InvIT and has initiated sale process of IFIN’s external non-performing loan portfolio of about ₹4,300 crore under the Swiss Challenge method.
The management also said that the selection and finalisation of H1 bidder for the TIFC real estate asset sale process (IL&FS Headquarters in Mumbai) is also underway.