IL&FS IL&FS group would clear debt of Rs 55,000 crore by March 2022, the board of the cash-strapped company has stated in its affidavit filed before the National Company Law Appellate Tribunal (NCLAT).
The IL&FS board led by Uday Kotak said Rs 55,000 crore debt would be resolved through asset monetisation, restructuring and insolvency proceeding initiatives, news agency PTI reported.
Some of this has already been completed while the rest is at different stages of resolution, it said in a brief snapshot on the progress made in the ongoing resolution process till December 7, 2021, and suggested estimates of progress to be made by March 2022, stated the report.
The IL&FS had a total outstanding debt of Rs 99,355 crore till October 8, 2018, of which Rs 45,500 crore debt is handled through debt resolution initiatives by March 2022, it added.
Of this, debt of Rs 20,500 crore has already been resolved through monetisation, Rs 4,000 crore by way of debt discharged and Rs 21,350 crore in cash available across companies and Invit unit (Infrastructure Investment Trust) due to be issued.
"As of January 4, 2021, the total number of entities in Respondent No 1 (IL&FS) group has reduced to 111 from 302," the affidavit said.
In this, IL&FS's domestic entities have been reduced to 95 from 169, while the offshore entities have been reduced to 16 from 133.
The Board had informed to resolve 29 of 60 entities through entity monetization process; 12 road assets under Invit; 3 assets where concession were terminated and 30 entities where it initiated closure or insolvency proceedings.
"A critical focus of the New Board has been on maintaining the going concern status of the Respondent No. 1 Group. Respondent No. I Group has also been focused on multiple resolution initiatives including expediting recoveries of loans and investments provided/ made by the Respondent No I Group, which amounts will be utilised towards discharging claims of the creditors of the relevant Respondent No I Group entities in accordance with the Revised Distribution Framework approved by this tribunal (NCLAT) vide the March 12, 2020 judgement," the affidavit said.
This has also resulted into an accumulated cash balance of Rs 16,742 crore as of December 7, 2021.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
