The IL&FS board expects to resolve around Rs 57,000 crore of the Rs 99,000 crore total debt inherited by the directors by March 2022. Overall the Uday Kotak led board expects to complete resolution of Rs 61,000 crore or about 62% of the total debt inherited by the new board in October 2018.
Chairman Kotak said that out of the 347 entities under IL&FS Group as of October 2018, a total of 235 entities stand resolved till date, including resolution applications filed with courts, and applications for additional 15 entities are expected to be filed with courts by March 2022.
“We have thus managed a 60% recovery above the IBC average of 38% recovery for group companies. This is higher than the average resolution seen in India,” Kotak said.
The group estimates resolution of the remaining nearly Rs 4,000 crore debt across 97 entities to move beyond March 2022 and thus achieve its overall debt resolution estimate of Rs 61,000 crore.
Overall till date Rs 52,200 crore of debt or 52% of total debt has been addressed which comprises Rs 14,100 crore of debt discharged including where debt was paid back or companies were sold. The group now has a cash balance of Rs 16,700 crore.
“We will decide on whether to do a fully distribute the cash balance or partly distribute depending on whether the courts allow it or not,” Kotak said. IL&FS has a balance Rs 8,200 crore from applications filed with courts which are pending approval.
Since the last update in July 2021, the 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, Kotak said.
IL&FS has also submitted an application with the 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 selection and finalisation of H1 bidder in the sale process of the company headquarters in Mumbai is also underway.