New Delhi: Crisis-hit IL&FS Group expects to address debt of about Rs 57,240 crore out of the total liability of over Rs 99,000 crore. The revised estimate is well above the 50 per cent mark of the overall debt.
The aggregate value of the debt being addressed is now estimated as over Rs 57,000 crore, with around Rs 50,500 crore likely to be sent by March 2021, said an IL&FS statement.
“The revised value accounts for over 57 per cent of total debt and is significantly higher than the average realization, till date, for financial creditors under the IBC process”it said
The rest of the unaddressed or unresolved amount would be taken as a haircut.
The restructured IL&FS Board — Uday Kotak as Non-Executive Chairman, Vineet Nayyar as Vice Chairman, C.S. Rajan as MD and Bijay Kumar as Deputy MD, along with other officials, highlighted the key initiatives taken, progress made till June 30, 2020, and revised timelines to complete the resolution process for the IL&FS Group, at a media briefing on Monday.
IL&FS has, till June 30, 2020, addressed debt of Rs 17,640 crore from a combination of completed asset sales, debt repayment to green entities, debt discharged in Non-Green bodies and available cash balance across the group.
The addressed debt of Rs 17,640 includes cash balance of Rs 8,630 crore, sale concluded for 11 entities with the obligation of over Rs 4,800 crore and additional equity consideration of Rs 625 crore received and the recovered amount of Rs 1,360 crore from loans and investments to non-IL&FS Group entities.
It also includes Rs 2,600 crore of principal repaid.
Further, the sale of 15 entities is in advanced stages with a resolution of over Rs 8,500 crore.
One of the largest InvITs with the gross target value of Rs 13,000 crore is being set-up, which includes 3 SPVS where the debt of over Rs 5,000 crore has been restructured. Further debt restructuring is in progress for over Rs 4,900 crore.
The New Board also shared a quarterly plan that estimates addressing additional debt of Rs 8,800 crore by Q2 of FY21, Rs 18,000 crore by Q3 FY21 and over Rs 6,000 crore by the end of Q4 FY21.
Efforts towards resolution of additional debt of Rs 6,600 crore are likely to continue beyond FY21, as the board expects the decision of major holding companies to take a longer time.
The IL&FS Board has developed a unique “group resolution framework” that received NCLAT approval on March 12, 2020. The framework can form a benchmark for future group insolvency in the country.