PFS to get Rs125cr as part of the resolution amount in stressed loan account IL&FS Tamil Nadu Power; Stock rallies

PFS had sanctioned total loan of Rs200cr under consortium arrangement to ITPCL for implementing the instant project.

December 06, 2021 3:28 IST | India Infoline News Service
PTC India Financial Services
PTC India Financial Services Limited (PFS) has announced that the company shall receive its share of around Rs 125 Crore as part of the total resolution amount from one of its stressed loan account in the thermal segment namely 2x600 MW coal power plant located at Cuddalore District in Tamil Nadu. The instant project has been implemented by IL&FS Tamil Nadu Power Company Ltd. (ITPCL).

PFS had sanctioned total loan of Rs200cr under consortium arrangement to ITPCL for implementing the instant project.

Currently, the IL&FS group is undergoing resolution under the provisions of Sections 241 and 242 of the Companies Act, 2013 and ITPCL has been classified as an ‘Amber’ Entity i.e. an entity that is not able to meet its entire obligations during the Testing Period (as defined by the Hon’ble NCLAT Order dated 15 October 2018) but can only meet operational payment obligations and payment obligations to senior secured financial creditors.

All the stakeholders, including the consortium lenders of ITPCL, had decided for debt restructuring of ITPCL under Change in Ownership Scheme as per the extant RBI circular dated June 07, 2019 and directions of the Hon’ble NCLAT. Subsequently a Resolution Plan was approved by the consortium lenders including PFS. The Resolution plan was then presented to Hon’ble NCLAT and as per the verbal hearing of the proceedings, it is understood that the Hon’ble NCLAT on its last hearing dated 1st December 2021 has accepted the Resolution plan submitted by PFS amongst other consortium lenders. Copy of the Order of Judgement is awaited.

As per the resolution plan, PFS is expected to receive around Rs 16 Crore (based on payment schedule till Q3 FY 22 as per the Resolution Plan) & interest amount of around Rs. 11 crores shortly and balance amount of Rs109cr shall be received as per the approved repayment schedule under the said Resolution plan. This development shall augment the liquidity position of PFS and also result in a reduction of its stressed assets portfolio.

PFS said, "Going forward, it shall also have a positive bearing on the yields and spread of PFS as this account was reflected in the assets but not yielding any income. Further, this is in line PFS’ endeavor to reduce its exposure to thermal assets and contribute towards Carbon Neutrality."

At around 3.26 pm, PFS was trading at Rs18.50 per piece up by 1.09% on Sensex. 

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