Firm rolls over ₹7,300-cr. shortfall to coming quarters, says COVID-19 added to logistical complexities
Infrastructure Leasing & Financial Services (IL&FS) Ltd. on Saturday reported a ₹7,300 crore shortfall in meeting the target for debt resolution by the September quarter citing COVID-19 related issues.
This shortfall is being rolled over for resolution in the subsequent quarters, the company said in a statement.
During the quarter, it could address group debt of only ₹1,460 crore.
“The delay has been mainly caused on account of significant impact of COVID-19, which has added time and logistical complexities in the process of completing discussions with stakeholders and in obtaining approvals from lenders, regulators and judicial authorities,” IL&FS said in the statement.
Stating that as per the update shared in July, the overall debt addressed based on cash balances stood at ₹17,640 crore, it added, “by September, an additional debt of ₹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 ₹19,100 crore.”
The number of entities resolved as of September 2020 stands at 173, or half the original number of 347 entities of the IL&FS Group.
Target for December
As per revised estimates, ₹13,200 crore of additional debt is projected to be addressed by December.
This includes the ₹8,150 crore resolved through the proposed InvIT for which an ‘in-principle’ approval from SEBI had been received.
Further, the time period for resolution of ₹4,200 crore being achieved through debt restructuring has moved from September to December, IL&FS said.
Resolution of ₹10,000 crore, earlier communicated for achievement in Q3 FY21, is being moved, to be achieved in subsequent periods the beleaguered company said.
The management and the new board of IL&FS, however, maintained the earlier estimate of addressing more than 50% of the overall debt, which exceeded ₹99,000 crore as of October 2018.
“The aggregate value of debt being addressed is pegged at ₹56,300 crore — with over ₹50,000 crore likely to be addressed by March 2021,” it said.
The new board of IL&FS has developed a ‘group resolution framework’ that received approval from the NCLAT on March 12.
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