Debt recovery target raised to ~61K cr: IL&FS

Infrastructure Leasing & Financial Services (IL&FS), which went kaput in 2018, creating a disruption in the shadow banking sector, has increased its estimate of aggregate debt to be addressed to ~61,000 crore from ~56,000 crore earlier.

“The upgrade in potentially addressable debt by ~5,000 crore has been largely on account of improved valuations, better operating performance, and enhanced recoveries from non-group exposures,” the board said.

So far, the board has addressed ~43,100 crore, which is more than 70 per cent of the overall revised targeted recovery value of ~61,000 crore and 44 per cent of the overall debt of over ~99,000 crore. Debt addressed means cash received or debt reduced plus final resolution with resolved amounts, pending NCLT approval.

The board, led by Uday Kotak, chairman of IL&FS, said by September of FY22 more than ~51,000 crore would be addressed. Hence, an additional debt of ~7,950 crore would be addressed in these six months. And, after September, the board is expecting to recover an additional ~9,950 crore.

Of the ~43,100 crore debt addressed by the board so far, ~26,800 crore is based on completed entity monetisation initiatives and an accrued cash balance. And, the rest of the amount (around ~14,350 crore) is expected from resolution and restructuring applications awaiting approval from the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT). Also, it includes the award by the Supreme Court, which has asked the government of Haryana to pay IL&FS ~1,926 crore in the Rapid Metro Gurgaon case.