IL&FS may resolve 50% of debt by FY20: Uday Kotak

The veteran banker gets one-year extension as chairman of the debt-ridden firm

October 01, 2019 09:38 pm | Updated 09:38 pm IST - Mumbai

BL 1-10-2019 MUMBAI, MAHARASHTRA: (Left) Udai Kotak, Non-Exec Chairman, IL&FS Board and C.S. Rajan, Managing Director addressing a press conference in Mumbai on Tuesday. Pic by SHASHI NASHIWAL

BL 1-10-2019 MUMBAI, MAHARASHTRA: (Left) Udai Kotak, Non-Exec Chairman, IL&FS Board and C.S. Rajan, Managing Director addressing a press conference in Mumbai on Tuesday. Pic by SHASHI NASHIWAL

The board of the crisis-hit Infrastructure Leasing & Financial Services (IL&FS), which was reconstituted by the government last year , expects to resolve at least half of the company’s debt issues by the end of the current financial year.

The company has initiated a combination of actions, including monetisation of assets and restructuring of debt, and hopes to either resolve or restructure 50% of its over ₹90,000 crore debt by March 2020, said Uday Kotak, who was appointed chairman by the government in October last year.

“Our good faith view at this point of time is that we should be able to recover, restructure or resolve... but we are quite confident that we should cross the 50% mark based on our best estimates and judgment,” Mr. Kotak told the media.

On Tuesday, the government gave Mr. Kotak a one-year extension to continue as the chairman of IL&FS.

The veteran banker also said that the company would consider the Infrastructure Investment Trust (InvIT) route to monetise some of its road assets.

Further, the company has identified a resolution plan for all its 302 entities, whose combined debt is pegged at ₹94,216 crore. These include 169 domestic entities and 133 overseas companies.

Incidentally, three entities with a combined debt of around ₹5,100 have already been successfully restructured, while discussions for restructuring another ₹8,000 crore worth of debt is at an advanced stage, as per the company presentation made on Tuesday.

In all, debt worth ₹36,400 crore is currently at various stages of getting resolved, said Mr. Kotak, while highlighting the fact that the the board of the company navigated through extreme complexity and developed a resolution plan for all the 302 entities.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.