IL&FS resolves Rs 57,000 crore debt

IL&FS, which defaulted its loan repayment in September 2018, had to pay back its lenders over Rs 99,000 crore at that time.

The debt addressed till date (Rs 56,943 crore) represents over 93 per cent of the overall estimated resolution value (Rs 61,000 crore), it said.

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Infrastructure Leasing & Financial Services (IL&FS) has resolved its debt of nearly Rs 57,000 crore by September 30, 2022 through monetisation of various assets.

Of the 347 entities under IL&FS group as of October 2018, 246 entities were resolved leaving101 entities – 88 domestic and 13 offshore – to be resolved, IL&FS said. IL&FS has addressed Rs 56,943 crore debt in its ongoing resolution efforts till September 30, 2022, up from Rs 55,000 crore debt updated in March this year, it said.

IL&FS, which defaulted its loan repayment in September 2018, had to pay back its lenders over Rs 99,000 crore at that time.

The firm informed about the progress made in the ongoing resolution process till September 30, 2022 in an affidavit filed before the National Company Law Appellate Tribunal (NCLAT).

IL&FS has retained its overall debt resolution estimate at Rs 61,000 crore, representing 62 per cent of overall – fund based and non-fund based – debt of over Rs 99,000 crore as of October 2018.

The debt addressed till date (Rs 56,943 crore) represents over 93 per cent of the overall estimated resolution value (Rs 61,000 crore), it said.

The Rs 56,943 crore debt resolved till September 30,2022 comprises: Rs 43,089 crore of debt addressed across entities including cash and Invit units, Rs 7,254 crore of resolution that are approved by the courts and pending closure, Rs 5,289 crore of resolution applications filed with courts and pending approval and balance Rs 1,331 crore of debt that has to be fully serviced across green entities.

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IL&FS has cash balances of Rs 19,699 crore as a result of its resolution initiatives including expediting recoveries of loans and investment provided by IL&FS group companies that will be used to discharge creditor claims of relevant companies, it said.

The board has stated that interim distribution for IL&FS Financial Services (IFIN) and other remaining entities would be completed by this fiscal.

The new board of IL&FS initiated various measures to pair debts, which included asset monetisation, debt restructuring, cost optimisation and liquidity management.

Kotak Mahindra Bank managing director & CEO Uday Kotak was appointed by the government to help the crisis-ridden IL&FS to come out of its mess. In September 2021, the government had extended Uday Kotak’s term as IL&FS Chairman by six months, which ended on April 2, 2022. Later, C S Rajan was made the non-executive chairman of IL&FS.

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As per the roadmap for IL&FS, its group companies have been categorised into three categories — green, amber and red — based on their respective financial positions.