IL&FS pays Rs 28.8k cr debt by FY23; debt resolution target at Rs 61K cr

Crisis-hit infrastructure finance firm IL&FS has paid a total debt of Rs 28,848 crore as of March 31, 2023, according to the latest affidavit filed before the insolvency appellate tribunal NCLAT earlier this week.

The group has resolved debts through monetisation and termination/settlement of payments by its group entities from the concessioning authorities and counter-party to the relevant contract.

"As on March 31, 2023, the debt resolved through such monetisation and termination measures aggregates to Rs 17,894 crores," said the status update report filed before the National Company Law Appellate Tribunal (NCLAT) by the company.

Besides, it has discharged Rs 4,958 crore from the cancellation of the non-fund-based limits availed by its group entities and Rs 5,996 crore through interim distribution.

By the end of FY23, "total debt discharged to creditors of the Respondent No 1 (IL&FS) Group aggregates to Rs 28,848 crore," the affidavit said.

Moreover, the cash balances across IL&FS Group aggregates to Rs 14,994 crore, of which cash available for interim/ final distribution is Rs 4,451 crore and the balance of Rs 10,543 crore is available in entities undergoing resolution.

The value of the InvIT units held by certain IL&FS Group entities aggregates to Rs 2,546 crore.

Moreover, resolutions aggregating Rs 6,634 crore were pending for closure before the benches of the National Company Law Appellate Tribunal.

"The resolution value in respect of such respondent No. 1 Group entities (where the application has been approved/ taken on record by the NCLT, but where closing is yet to take place) aggregates to Rs 6,634 crores (net of cash and debt already discharged), as on March 31, 2023," said the report dated April 30.

As per the framework approved by the appellate tribunal, approval from the NCLT is required for the resolution mechanism for the relevant domestic group entities.

IL&FS has retained the overall debt resolution target of Rs 61,000 crore.

"The New Board was tasked with resolving the Respondent No. 1 Group, and on account of the various measures undertaken by it, the overall debt resolution across the Respondent No. 1 Group is estimated to reach approximately Rs 61,000 crore, which aggregates to approximately 61.39 per cent of the total external debt outstanding of Rs 99,355 crore," it said.

It had already completed an interim distribution of Rs 635 crore and Rs 1,273 crore in its two special purpose vehicles (SPVs) - Rapid Metro Rail Gurgaon Limited (RMGL) and Rapid Metro Rail Gurgaon South Limited (RMGSL) - as termination payment in the Gurgaon Metro Project case.

Besides, it has also completed interim distribution of Rs 3,200 crore to IFIN creditors, as per the revised distribution framework approved by the NCLAT and Rs 920 crore to Chenani Nashri Tunnelway (CNTL) creditors.

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.

IL&FS has a total of 302 entities of which 169 are domestic and the rest 133 are offshore. In this, 47 domestic and 115 offshore entities are fully resolved.