The new board of IL&FS Group said on Tuesday it has addressed debt of ₹55,000 crore till date. The debt addressed represents over 90% of the overall estimated resolution value.
The Group retained its overall resolution estimate at ₹61,000 crore, representing 62% of overall fund-based and non-fund-based debt of over ₹99,000 crore as of October 2018.
Resolution of the remaining ₹6,000 crore debt will move into FY23, a statement from IL&FS said. Till November 2021, the company had resolved debt worth ₹52,200 crore.
Of the 347 entities under IL&FS Group as of October 2018, a total of 246 entities stand resolved, leaving 101 entities to be resolved.
An application has been filed with NCLAT for undertaking interim distribution of ₹16,000 crore of cash and InvIT units available across the group. Over 75% of this would be distributed to creditors of three large holding companies - IL&FS, IFIN and ITNL - which have a large base of public fund creditors. This has been made possible on account of IL&FS’ resolution framework and the underlying distribution formula.
The incremental resolution of over ₹2,700 crore since November 2021 comprises ₹1,080 crore from sale of IL&FS headquarters in BKC Mumbai, ₹900 crore under Khed Sinnar claim settlement with NHAI, ₹230 crore from settlement of IFIN’s non-performing loan accounts and ₹520 crore from other recoveries. In addition, the Group continues to service debt of ₹1,000 crore across companies.
ITNL completed transfer of two road assets (Sikar Bikaner Highway Limited and Moradabad Bareilly Expressway Limited) to Roadstar Infra Investment Trust at a cumulative enterprise valuation of ₹4,200 crore. Transfer of remaining SPVs to the InvIT is being undertaken in multiple phases.
The new board continues to encounter several challenges in completing the resolution, which in turn, have impacted timelines. Some of these are existence of complex share-holding arrangements and web of infra group borrowings, non-payment of dues by state utility to ITPCL, delay in receipt of annuities from some state governments, securing various consent from other stakeholders including lenders, shareholders and joint venture partners, coercive creditor actions, and ongoing legal proceedings by different lender groups, sub-contractors and authorities.
