“I am happy to report that IL&FS Group has addressed Rs 52,200-crore debt…we believe the total recovery and resolution will be around Rs 61,000 crore, which is around 61-62% of original debt,” Kotak said.
The debt-laden IL&FS has so far resolved Rs 52,200 crore of debt till date and is on track to resolve an additional Rs 4,800 crore by March end, the group’s chairman Uday Kotak said on Tuesday. “I am happy to report that IL&FS Group has addressed Rs 52,200-crore debt…we believe the total recovery and resolution will be around Rs 61,000 crore, which is around 61-62% of original debt,” Kotak said.
Of the total debt resolved till date, Rs 14,100 crore comprises of debt discharged to creditors, available balance of Rs 16,700 crore, Rs 13,200 crore from cases approved by the courts and are pending transaction closure on account of documentation, and balance Rs 8,200 crore from applications filed with courts which are pending approval.
He added that out of the total 347 IL&FS Group companies, a total of 235 entities have been resolved. These include entities whose resolution application has been filed before a court. Further, 15 more entities will likely see resolution by March, Kotak said. The IL&FS crisis, Kotak said, showcases that complex resolution of conglomerates is possible if done in a calibrated manner.
“Group resolution has always been a big challenge, you see many many cases out there in the public domain whether it’s a Videocon, whether it’s a Lanco, or many other situations where group resolution process in IBC framework has had its challenges of recovery…,” he said.
Since July, the IL&FS Group has addressed additional debt of Rs 8,500 crore from monetisation initiatives including: InvIT Phase 1; Terracis Technology (erstwhile IL&FS Technologies); ONGC Tripura Gas based power project; Warora Chandrapur Road project and IL&FS Prime Terminals Fujairah.
“In addition, the Group has filed an application with National Company Law Tribunal (NCLT) seeking approval for transfer of 5 Road projects, with approximate resolution value of Rs 4,000 crore, under Phase 2 of the InvIT and has launched sale process of IFIN’s external non-performing loan portfolio of around Rs 4,300 crore under Swiss Challenge,” the company said in a release.
“The selection and finalisation of H1 bidder in the TIFC sale process (IL&FS Headquarters in Mumbai) is also underway,” it added.