IL-;FS pays off debt worth Rs 56,943 crore

14 Dec 2022 , 08:39 AM

Infrastructure finance company IL&FS said that by selling various assets, it was able to pay off up to Rs56,943 crore in debt by September 30, 2022, bringing the total number of businesses under its control down to 101 from 302.

In an affidavit submitted to the National Company Law Appellate Tribunal (NCLAT), the indebted firm reported on the developments in the ongoing resolution procedure through September 30, 2022.

According to Infrastructure Leasing & Financial Services, the “estimated debt resolution as of date” was Rs55,612 crore, and another Rs1,331 crore of debt was totally paid off by its profitable green firms (IL&FS).

When IL&FS first missed a loan payment in September 2018, it was required to pay back its lenders more than Rs90,000 crore.

The IL&FS Group stated it will pay off its debt of Rs55,000 crore by March 2022 in a prior affidavit submitted by the new board, which was then led by Uday Kotak, in February of this year.

The new IL&FS board started a number of debt-pairing initiatives, including asset monetisation, debt restructuring, cost reduction, and liquidity management.

Additionally, it has been concentrated on a number of resolution activities, such as accelerating loan recoveries and group company investment. The money will be used to pay off creditors’ claims in accordance with the updated distribution plan.

The government appointed Uday Kotak, Managing Director & CEO of Kotak Mahindra Bank, to assist the insolvent IL&FS in getting out of its mess.

C S Rajan was subsequently appointed non-executive chairman of IL&FS.

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