IL&FS group expects to resolve extra Rs 4,800 crore debt by March 22

IL&FS group expects to resolve extra Rs 4,800 crore debt by March 22

Troubled group expects to resolve additional of about Rs 4,800 crore in five months, taking total amount resolved amounts close to Rs 57,000 by March 2022.

Giving the break up of the Rs 52,200 crore resolved till date, Uday Kotak, the group’s chairman, said lenders have recieved Rs 14,100 crore. Amounts which are in cash with various group entities are about Rs 16,700 crore.

The group has completed sale and purchase agreements worth Rs 21,000 crore, awaiting approvals from regulatory and legal forums.

It also stuck to its earlier estimate of resolving of Rs 61,000 crore, representing 62 per cent of overall of over Rs 99,000 crore as of October 2018. This covers funded and non-funded exposures.

Kotak said overall resolution estimate (61 per cent) is significantly higher than the average recovery observed under IBC 2016, since its inception. The debt resolved in IBC cases is about 38 per cent.

Of the 347 entities under Group as of October 2018, a total of 235 entities stand resolved till date, including resolution applications filed with courts. The applications for additional 15 entities are expected to be filed with courts by March 2022, he said.

Since the last update in July 2021, the Group has addressed additional debt of Rs 8,500 crore from monetisation initiatives. These cases include InvIT Phase 1; Terracis Technology (erstwhile Technologies); ONGC Tripura Gas based power project; Warora Chandrapur Road project and IL&FS Prime Terminals Fujairah.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link