Mumbai: Two years after taking control of the bankrupt financial and infrastructure leasing services (IL&FS), the board of directors led by Uday Kotak has resolved ₹19,100 crore, or approximately 19%, of the outstanding debt of the group over ₹1 trillion.
During the July-September 2020 quarter, the new administration resolved a debt of approximately ₹Rs 1,460 crore: through the sale of the education business, the takeover of non-IL & FS group entities, the increase of cash balances and the repayment of debt in green (solvent) entities. However, the debt resolution target during the second quarter had been ₹Rs.88 billion, which the group lost by a wide margin of ₹7,300 crore.
However, in a press release on Saturday, the new IL&FS management maintained its objective of addressing ₹Rs 50 billion of the group’s bad debt as of March 2021.
The group said the delay “has been primarily due to the significant impact of COVID-19, which has added time and logistical complexities in the process of completing discussions with stakeholders and obtaining approvals from lenders, regulators and judicial authorities.” . to conduct face-to-face discussions, site visits, due diligence, smooth negotiations with key stakeholders: lenders, bidders (domestic and foreign) on complex transaction structures, delays in receiving annuities from certain state governments, and court filings pending and Transaction closing conditions have slowed down the resolution process.
According to revised estimates, ₹Rs 13,200 crore of additional debt is projected to be addressed by December 2020, the group said. This includes ₹Rs 8,150 crore settled through the proposed InvIT (Infrastructure Investment Trust) for which an approval “in principle” has been received from Sebi. Furthermore, the resolution of ₹Rs 4,200 crore that was achieved through the debt restructuring was carried over from September 2020 to December 2020. “The resolution for ₹Rs 10,000 crore, previously reported for its achievement in the third quarter of fiscal year 21, is moving to achieve it in later periods, “the group said.
Other developments during the second quarter included the launch of the IL&FS Engineering & Construction sale process and the IL&FS Financial Center building in Mumbai, as well as finding buyers for the IL&FS Financial Services external loan book.
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