IL&FS to address over 50% of Rs 99k crore debt by March, 2021

The new board of IL&FS on Saturday clarified that it would address more than 50% of the overall debt of over Rs 99,000 crore as of October 2018.

The aggregate value of the debt being addressed is pegged at Rs 56,300 crore — with over Rs 50,000 crore likely to be addressed by March 2021. According to the last update shared in July, the overall debt addressed based on cash balances stood at Rs 17,640 crore.

By September, an additional debt of around Rs 1,460 crore has been addressed, by way of sale of education business, recovery from non-IL&FS group entities, increase in cash balances and debt repayment in green entities, increasing the overall debt addressed based on cash balances to Rs 19,100 crore.

The number of entities resolved as of September stands at 173 — that is half the original number of 347 entities of the IL&FS Group — company said in a statement.

Elsamex SA an IL&FS Group company with 100 step down subsidiaries, was admitted into insolvency during September quarter, thus contributing to the substantial reduction in the number of entities of the IL&FS Group.

The company said due to Covid-19, there had been some delay in achieving the target for debt, which is being rolled over to subsequent quarters. As compared to the previous update, the Rs 7,300 crore shortfall in target for debt addressed by September is being rolled over for achievement in subsequent quarters, it said.

According to revised estimates, Rs 13,200 crore of additional debt is projected to be addressed by December. This includes `8,150 crore resolved through the proposed InvIT for which an ‘in-principle’ approval from Sebi has been received. Further, resolution of Rs 4,200 crore being achieved through debt restructuring has moved from September to December. Resolution for Rs 10,000 crore, earlier communicated for achievement in this quarter, is being moved to be achieved in subsequent periods.