IL&FS Board Announces That Resolution Plans For All Its 302 Entities Are Ready; Moves To Restructure Debt In Progress
[ By Bobby Anthony ]The reconstituted board of IL&FS has stated that resolution plans for all its 302 entities are ready and debt of Rs 36,400 crore have been addressed so far.IL&FS has stated in a presentation that three entities with a total debt of Rs 5,100 crore have been successfully restructured. The group and its entities have a total external debt of Rs 94,216 crore.It said...
The reconstituted board of IL&FS has stated that resolution plans for all its 302 entities are ready and debt of Rs 36,400 crore have been addressed so far.
IL&FS has stated in a presentation that three entities with a total debt of Rs 5,100 crore have been successfully restructured. The group and its entities have a total external debt of Rs 94,216 crore.
It said that discussions to restructure ILFS Energy and Tamilnadu Power Company (ITPCL) with a debt of Rs 8,000 crore are at an advanced stage while discussions for three other entities with a total debt Rs 2,400 crore are in progress.
Speaking to the media recently in Delhi about the completion of one year of the reconstituted board, the Non-Executive Chairman of IL&FS stated that the board is confident on restructuring or resolving 50% of the total debt.
Public process has been launched for 65 entities including 54 domestic and 11 international entities, while the public process for 11 others will be launched soon.
According to the IL&FS presentation, the claims management process for 70 entities covering 86% of external debt is in progress in line with the insolvency and bankruptcy process.
The sale of real estate assets with estimated value of Rs 3,000-3,500 crore is in progress, it has been stated.
Regarding the challenges in the asset monetization process, the presentation said that large number of simultaneous processes, lack of centralized database, delayed audited accounts are among the major challenges. It also described external economic environment as a challenge.
The IL&FS presentation also mentioned “coercive” creditor actions such as auto debit, non-creation of FDs in contravention of court orders and stated that a formal approval for resolution framework is awaited.
It said that the new board has navigated through complexity and developed resolution plan for all 302 entities and the going concern status has been maintained to preserve value for all stakeholders. The board has formulated a unique resolution framework to balance interests of stakeholders, it added.
IL&FS stated that its board is continuously evaluating options and actively considering alternatives such as InvIT for value maximization. The board has targeted to achieve resolution for significant quantum of addressable debt by March 2020, the presentation stated.