IL&FS addresses Rs. 43,000 cr debt
Raises aggregate debt recovery target to Rs 61,000 cr
Mumbai: IL&FS Group has addressed a debt of Rs 43,000 crore so far and the management has now raised its aggregate debt recovery estimate to Rs 61,000 crore. The previous estimate of overall debt recovery was Rs 56,000 crore.
The increased estimate represents a resolution of nearly 62 per cent of overall fund based and non-fund based group debt of around Rs 99,000 crore, as of October 2018, Chairman of IL&FS, Uday Kotak told the media on Thursday.
The aggregate debt of Rs 43,000 crore addressed till date represents nearly 71 per cent of the overall revised targeted recovery value of Rs 61,000 crore and 44 per cent of the overall debt of over Rs 99,000 crore. "It may be kept in mind that the recovery target is higher than the average recovery observed under IBC since its inception," said an IL&FS statement.
Out of 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.
The new board, while working in public interest, has been able to maximise the recoveries for all classes of creditors, through following a three-pronged strategy of resolution, restructuring and recovery, while keeping the tenets of corporate governance and corporate finance in mind."The upgrade in potentially addressable debt by Rs 5,000 crore has been largely on account of improved valuations, better operating performance and enhanced recoveries from non-group exposures," IL&FS said.
The aggregate addressed debt of Rs 43,000 crore comprises Rs 26,800 crore on the basis of entity monetisation initiatives and accrued cash balance, Rs 14,350 crore of additional net recovery expected from resolution and restructuring applications filed with and awaiting approval of the Mumbai-bench of NCLT and the NCLAT and Rs 1,926 crore from Supreme Court verdict passed in favour of Rapid Metro Gurgaon. The period since January 2021 also saw the filing of NCLT application for Phase 1 of IL&FS Group's Infrastructure Investment Trust (InvIT) with a resolution value of over Rs 9,300 crore across six Road SPVs.