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.
Estimate unchanged
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.
