Financial Insights

IL&FS sees debt resolution of Rs 55,000 crores as Uday Kotak exits

IL&FS sees the end of Uday Kotak’s term as the infrastructure giant has been able to resolve debt worth Rs 55,000 crores. The Union Govt. had appointed Mr. Uday Kotak as Non-Executive Chairman and his tenure will end on April 2. Mr. CS Rajan has been appointed as MD for a period of 6 months from April 3.

Of the total debt of Rs 55,000 crore, Rs 21,000 crore of debt has been discharged by way of monetisation of assets and debt repayment, largely to public sector lenders. The group has another Rs 20,000 crore in the form of cash and INVIT unit balance, while debt amounting to Rs 14,000 crore is presently engaged in different courts of which Rs 7,500 crore has already been approved and transaction closure is underway.

The company has managed to resolve 90% of its target, according to Rajan. Since November, the company has managed to resolve an additional Rs 2700 crores in debt.

The incremental resolution of over Rs 2,700 crore comprises Rs 1,080 crore from the sale of IL&FS headquarters in Mumbai to Brookfield Asset Management, Rs 900 crore under Khed Sinnar claim settlement with the NHAI, Rs 230 crore from the settlement of IFIN’s non-performing loan accounts, and Rs 520 crore from other recoveries.

According to Mr. Kotak who has managed the company since it’s bankruptcy in 2018 stated that it would be a matter of great joy if the company is able to exceed it’s Rs 61000 crore resolution target.

Highlight by Aman Agarwal.

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