In an affidavit submitted with the National Corporation Law Appellate Tribunal, the board of the crisis-hit company declared that it would resolve debt of Rs 55,000 crore by March 2022. (NCLAT). The IL&FS board of directors, led by Uday Kotak, announced that the debt of Rs 55,000 crore would be handled through asset monetization, restructuring, and insolvency procedure activities.
It said in a brief snapshot on the progress made in the ongoing resolution process until December 7, 2021, that some of this has already been finished, while the rest is at various levels of resolution, and that projections of progress are to be made by March 2022.
As of October 8, 2018, IL&FS has a total outstanding debt of Rs 99,355 crore, of which Rs 45,500 crore will be resolved through debt resolution activities by March 2022.
A total of Rs 20,500 crore in debt has been handled through monetization, with another Rs 4,000 crore in debt discharged and Rs 21,350 crore in cash accessible across enterprises and an Invit unit (Infrastructure Investment Trust) due to be issued.
In addition, the board anticipates resolving Rs 5,300 crore through “transactions sanctioned by the relevant court/tribunal and pending transaction closing” and Rs 4,200 crore through “resolution applications filed with courts and pending approvals.”
The total number of firms in the Respondent No 1 (IL&FS) group has decreased to 111 from 302 as of January 4, 2021, according to the affidavit.
Domestic entities at IL&FS have been cut from 169 to 95, while offshore firms have been decreased from 133 to 16.
The Board announced that it would settle 29 of 60 entities through entity monetization, 12 road assets under Invit, three assets where concessions were canceled, and 30 entities where closure or bankruptcy proceedings were launched.
“The New Board has placed a high priority on the Respondent No. 1 Group’s ability to continue operating. The Respondent No. I Group has also been focused on many resolution initiatives, including expediting the recovery of loans and investments provided/ made by Respondent No. I Group, the proceeds of which will be used to pay creditors of the relevant Respondent No. I Group entities by the Revised Distribution Framework approved by this tribunal (NCLAT) in its March 12, 2020 judgment “According to the affidavit,
As of December 7, 2021, the company had an accumulated cash balance of Rs 16,742 crore.
The NCLAT, as requested by the government, adopted a distribution mechanism based on “pro-rata distribution” among creditors of the debt-ridden IL&FS group from the sale profits on March 12, 2020.
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