NEW DELHI: Infrastructure finance firm IL&FS said it has resolved its debt of up to Rs 56,943 crore by September 30, 2022, through the monetisation of various assets and reduced the number of entities to 101 from 302.
The debt-ridden firm informed about the progress made in the ongoing resolution process till September 30, 2022, in an affidavit filed before the National Company Law Appellate Tribunal (NCLAT).
"Estimated debt resolution as of date" was Rs 55,612 crore, and another Rs 1,331 crore debt was fully served by its green entities, which are profitable, said Infrastructure Leasing & Financial Services (IL&FS). Moreover "entities in respondent no 1 (IL&FS) has reduced to 101 from 302", which includes 88 domestic entities and 13 offshore entities, said the affidavit filed by its Managing Director Nand Kishore.
IL&FS, which defaulted on its loan repayment for the first time in September 2018, had to pay back its lenders over Rs 90,000 crore at that time.
In its earlier affidavit filed by the new board then headed by Uday Kotak in February this year, IL&FS group had said it will resolve Rs 55,000 crore debt by March 2022.
The new board of IL&FS initiated various measures to pair debts, which included asset monetisation, debt restructuring, cost optimisation and liquidity management. It has also been focused on multiple resolution initiatives, including expediting loan recoveries and investment by IL&FS group companies.
The amount will be utilised towards discharging claims of creditors in accordance with the revised distribution framework.
"This has also resulted in an accumulated cash balance (across various entities in IL&FS group) of approximately Rs 19,699 crore (as of September 30, 2022)," said the 226-page affidavit.
NCLAT had on March 12, 2020, approved a distribution framework based on "pro-rata distribution" among creditors of IL&FS group from the proceeds of the sale, as suggested by the government.
Uday Kotak, Managing Director & CEO of Kotak Mahindra Bank, was appointed by the government to help the crisis-ridden IL&FS to come out of its mess. In September 2021, the government extended Uday Kotak's term as IL&FS Chairman by six months, which ended on April 2, 2022.
Later, C S Rajan was made the non-executive chairman of IL&FS.
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As per the roadmap for IL&FS, its group companies have been categorised into three categories -- green, amber and red -- based on their respective financial positions.
Companies under the green category are those that continue to meet their payment obligations. The Amber category is for those companies that would not be able to meet their obligations but can meet only operational payment obligations to senior secured financial creditors. Amber category entities "are permitted to make only payments necessary to maintain and preserve the going concern."
"Companies falling in the red category are the entities which cannot meet their payment obligations towards even senior secured financial creditors," as per the plan.