Infrastructure Leasing & Financial Services Ltd (IL&FS) has addressed debt resolution of Rs 55,000 crore, or nearly 55 per cent of the debt, after the group became a defaulter, and the government superseded its board in October 2018. The tenure of Uday Kotak as non-executive Chairman will end on April 2 and the Ministry of Corporate Affairs has appointed CS Rajan Chairman and MD of IL&FS for six months with effect from April 3. The IL&FS group retained its overall resolution estimate at Rs 61,000 crore, representing 62 per cent of overall — fund-based and non-fund based—debt of over Rs 99,000 crore as of October 2018. "IL&FS is a case study for how we should think about the future of structure, regulation and governance and how we built a resolution framework in areas that are non-man's land," Kotak said.
Bankrupt infrastructure financier IL&FS on Tuesday said that it has resolved the debt of nearly Rs 55,000 crore at the end of March and retained its aggregate debt resolution target of Rs 61,000crore, which is 62% of the total debt. The group has a total debt of Rs 1 lakh crore. The board also said that the IL&FS headquarters at BKC, Mumbai, has been sold to Brookfield for Rs1,080 crore. The letter of intent has been issued and the handover will happen soon.
Infrastructure Leasing And Financial Services (IL&FS) has resolved atotal of Rs 55,000-crore debt during the past three-and-a-half years after a new board headed by Uday Kotak took over the beleaguered firm. Further, billionaire banker Kotak's term as chair¬man of IL&FS ends on April 2. The new board, however, continues to face challenges in implementing the resolution, thereby impacting timeliness. Some of these challenges pertain to the existence of complex share-holding arrangements and web of infra group borrowings, non-payment of dues by state utility to ITPCL and delay in receipt of annuities from some state governments. The group continues to implement its three pronged strategy of resolution, restructuring and recovery to maximise recoveries for all classes of creditors while adopting an equitable distribution approach and balancing the interests of stakeholders.
Crisis-hit Infrastructure Leasing & Financial Services Ltd (IL&FS) has resolved nearly 55% of the group's outstanding debt over the last three-and-a-half years, managing director C.S. Rajan said on Tuesday. Among others, the company sold its iconic headquarters at Bandra Kurla Complex for Rs1,080 crore to reduce debt. With this, Kotak Mahindra Bank managing director (MD) and chief executive officer (CEO) Uday Kotak, who has been serving as non-executive chairman of IL&FS, will step down on 2 April, and Rajan will take charge on 3 April as chairman & MD for six months.
Crisis-hit Infrastructure Leasing & Financial Services Ltd (IL&FS) has resolved nearly 55% of the group's outstanding debt over the last three-and-a-half years, managing director CS Rajan said on Tuesday Among others, the company sold its iconic headquarters at Bandra Kurla Complex for Rs 1,080 crore to reduce debt. With this, Kotak Mahindra Bank managing director (MD) and chief executive officer (CEO) Uday Kotak, who has been serving as non-executive chairman of IL&FS, will step down on April 2, and Rajan will take charge on April 3 as chairman & MD for six months. Nearly Rs 55,000 crore of IL&FS's total debt of Rs 99,000 crore has been resolved, and this is 90% of the estimated debt resolution of Rs 61,000 crore, Rajan said at a press conference
Uday Kotak will step down as the Chairman of the board of IL&FS after his term ends on April 2. CS Rajan, Managing Director of IL&FS, has been named Chairman and Managing Director for six months with effect from April 3 by the Ministry of Corporate Affairs. The Centre had in October 2018 taken control of debt ridden IL&FS and replaced the board with a new set up led by Uday Kotak. The Group had over Rs 99,000 crore of debt at the time.
The resolution from the IL&FS group is expected at Rs 61,000 crore of the total debt of Rs 99,355 crore, which is almost 62 per cent, said Uday Kotak, who was appointed the non-executive chairman of the company in October 2018 by the government after superseding the board at that time. The resolution process of IL&FS started three and half years ago after a new management was appointed by the government. Kotak's term as non-executive chairman in IL&FS will end on April 2, after which managing director CS Rajan will take charge as chairman and managing director. The ministry of corporate affairs has appointed Rajan as CMD for six months, with effect from April 3.
Rs 21,000 crore of debt discharged by way of monetisation of assets and debt repayment – largely to public sector lenders. Group has nearly Rs 20,000 crore of cash and InvIT unit balance - this includes Rs 16,000 crore to be distributed to creditors by way of interim distribution post judicial approval. Resolution of Rs 14,000 crore filed with courts - of which Rs 7,500 crore has been approved and transaction closure is underway. Mr Uday Kotak’s term as Chairman, IL&FS, ends on April 2, 2022. Mr CS Rajan, Managing Director, IL&FS has been appointed Chairman and Managing Director of IL&FS for a period of six months wef April 3, 2022 by the Ministry of Corporate Affairs, Government of India.
Lenders to the Chenani-Nashri Tunnelway (CNTL) — a subsidiary of IL&FS Transportation Networks —have approved a restructuring proposal with an enhanced recovery payout for all categories of lenders. CNTL maintains and operates the longest tunnel in J&K and receives an annuity of Rs 635 crore annually.
The lenders have approved IL&FS Group's proposal to restructure the Rs 5,500 crore debt of its subsidiary Chenani Nashri Tunnelway (CNTL), which offers almost full repayment to them. The move comes after the company has revalued itself at Rs 5,257 crore now after the deal with Cube Highways of Singapore failed last year, due to regulatory delays, for a consideration of Rs 3,900 crore.