NEW DELHI: Two years after taking control of insolvent Infrastructure Leasing and Financial Services (IL&FS), the company’s new board has resolved Rs 19,100 crore, or roughly 19 per cent, of the company’s debt as of the end of the September quarter.
In its second quarterly asset resolution status update, IL&FS said it has addressed Rs 1,460 crore of additional debt during July-September period by way of selling its education business, recovery from non-IL&FS group entities, increase in cash balances, and debt repayment in green (solvent) entities.
The company added that it will rollover the Rs 7,300 crore shortfall compared to its target to subsequent quarters.
“The delay has been mainly caused on account of significant impact of COVID-19, which has added time and logistical complexities in the process of completing discussions with stakeholders and in obtaining approvals from lenders, regulators and judicial authorities,” IL&FS said.
However, the new management of the infrastructure financier maintained its target of addressing Rs 50,000 crore, out of the group’s outstanding debt of over Rs 1 lakh crore, by March 2021.
The additional debt that the company expects to address in the quarter includes resolving Rs 8,150 crore through a proposed Infrastructure Investment Trust (InvIT) for which it has received an “in-principle” approval.
IL&FS’ official target is to resolve Rs 56,300 crore debt this fiscal year, against an earlier target of Rs 57,240 crore.
Quarter wise, the revised target of debt resolution is Rs 32,300 crore for Q3, and another Rs 18,000 crore for the March quarter.