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About ₹43,000 crore of debt of bankrupt Infrastructure Leasing and Financial Services (IL&FS) has been addressed, and the new board and management expects that this would increase to ₹50,000 crore by the end of September this year.
It has also raised the estimate for overall debt recovery to ₹61,000 crore.
“The group has also enhanced its estimates of aggregate debt recovery to ₹61,000 crore – an increase of ₹5,000 crore over its earlier estimate of ₹56,000 crore,” said Uday Kotak, Chairman of the board of IL&FS, on Thursday.
The increased estimate represents resolution of nearly 62 per cent of overall fund-based and non-fund based group debt of about ₹99,000 crore as of October 2018.
“The aggregate debt of ₹43,000 crore addressed till date represents nearly 71 per cent of the overall revised targeted recovery value of ₹61,000 crore and 44 per cent of the overall debt of over ₹99,000 crore (as of October 2018),” said a statement by IL&FS, adding that the recovery target is higher than the average recovery observed under IBC since its inception.
“The upgrade in potentially addressable debt by ₹5,000 crore (to ₹61,000 crore) has been largely on account of improved valuations, better operating performance, and enhanced recoveries from non-group exposures,” it further said.
Of the total 347 entities under IL&FS Group (as of October 2018), a total of 186 entities stand resolved till date, while the remaining 161 entities are under various stages of resolution.
Sale of entities
CS Rajan, MD, IL&FS, said that by September-end the number of entities would come down to double-digits. This would be done by a combination of liquidation, closure of some entities, and sale of some entities.
The ₹43,000 crore of debt addressed includes ₹26,800 crore of completed entity monetisation initiatives and accrued cash balance, ₹14,350 crore of additional net recovery expected from resolution and restructuring applications filed with NCLT, and ₹1,926 crore from Supreme Court verdict passed in favour of Rapid Metro Gurgaon.
IL&FS said that by September 2021 it expects to address about ₹8,000 crore of additional debt by initiatives, including monetisation of stake in ONGC Tripura, Warora Chandrapur and Karyavattom Stadium; Phase 2 of InvIT, including 5 Road SPVs; and receipt of expected settlement claims from road authorities for Khed Sinnar Expressway and Srinagar Sonmarg Tunnel.
Additional recovery
Post-September 2021, it expects additional recovery of over ₹9,950 crore.
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