Scars of September 21, 2018, or India's financial services sector's Black Friday cannot fade easily. Two major housing financiers — Dewan Housing Corporation and India-bulls Housing — saw over 55 per cent single-day crashes in their stock prices caused by fears of redemption in the debt market. That brought to fore that India's then largest non-banking finance company (NBFCs) — Infrastructure Leasing and Financial Services (IL&FS) — was neck-deep in crisis calling for a swift government intervention. With over Rs 1 trillion of loan due to mainly banks and mutual funds, preventing a systemic contagion was top priority. Nearly three years later, banker Uday Kotak, chairman of IL&FS's reconstituted board, is relieved that the aftermath was largely contained. Appointed on October 1, 2018, Kotak and his seven-member team was inducted to resolve the defunct lender's mammoth loan burden.
The new Board of Infrastructure Leasing and Financial Services (IL&FS) on Thursday revised the aggregate debt recovery estimate by the group to Rs 61,000 crore, or about 62 percent of overall debt of over Rs 99,000 crore as of October 2018. "The group has also enhanced its estimates of aggregate debt recovery to Rs 61,000 crore—an increase of Rs 5,000 crore over its earlier estimate," said Uday Kotak, Chairman of the board of IL&FS. The new board that took over the crisis-hit infrastructure group two and a half years ago, had earlier estimated a recovery of Rs 56,000 crore.
The government-appointed board of troubled Infrastructure Leasing and Financial Services (IL&FS) expects to resolve about 60% of the entity's outstanding dues of around Rs 1 trillion by the end of this fiscal
Crisis-ridden Infrastructure Leasing & Financial Services (IL&FS) on Thursday said it has addressed aggregate group debt of Rs 43,000 crore so far and expects to cross Rs 51,000 crore by September 2021. The debt-laden group has further enhanced its estimates of aggregate debt recovery to Rs 61,000 crore beyond September 2021. In October 2020, IL&FS had targeted to address Rs 50,300 crore of its overall debt by March 2021 and over Rs 56,000 crore by FY22. The group's overall debt stood at Rs 99,000 crore, as of October 2018. "The total money owed by IL&FS to financial creditors was Rs 1lakh crore (including non-fund based exposures).
The board of IL&FS has increased the recovery target to Rs 61,000 crore from Rs 56,000 crore. It also said that Rs 43,000-crore debt has already been resolved. The increased target is nearly 62% of the overall fund and non-fund based group debt of about Rs 99,000 crore as of October 2018. The debt of Rs 43,000 crore addressed to date is nearly 71% of the overall revised targeted recovery value and 44% of the overall debt.
Bankrupt infrastructure financier IL&FS Thursday raised its debt recovery target to Rs 6L000 crore or nearly three-fifths of its total financial borrowings. Its collapse in late 2018 had a cascading effect on the non-bank financing industry where cash flow mismatches became manifest after funding dried up in the aftermath of the IL&FS blowout. Last year, the group said it could resolve loans worth Rs 56,000 crore.
The New Board and Management of IL&FS, as part of its quarterly update process on the progress of ongoing Group resolution process, shared that it has addressed aggregate Group debt of Rs 43,000 crore till date. The Group has further enhanced its estimates of aggregate debt recovery to Rs 61,000 crore – an increase of Rs 5,000 crore over its earlier estimate of Rs 56,000 crore. The increased estimate represents resolution of nearly 62% of overall fund based and non-fund based Group debt of approx. Rs 99,000 crore, as of October 2018.
*About ₹ 43,100 Cr of debt stands addressed, including filings made with NCLT / NCLAT and final orders of Supreme Court awaiting compliance - an increase of ₹ 11,200 Cr since last update in Jan ’21. The New Board estimates overall recovery to be around ₹ 61,000 Cr; an upward revision to its previous estimate of ₹ 56,000 Cr -Improved valuations, better operating performance, enhanced recoveries from non group exposure being major drivers.
Debt-laden Infrastructure Leasing and Financial Services (IL&FS) on Wednesday said it has sold its entire stake in IL&FS Environmental Infrastructure & Services (IEISL) and its subsidiaries to EverEnviro Resource Management Private (EverEnviro). This sale will reduce IL&FS' overall debt by Rs 1,200 crore, which is the combined debt of entities under the group's environment businesses, a release said. IL&FS, as the promoter shareholder of IEISL, held 97.54% of equity shares of IEISL. The balance 2.46% was held by IL&FS Employee Welfare Trust.
Infrastructure company IL&FS has sold its stake in environment business to EverEnviro Resource Management, a wholly owned subsidiary of Green Growth Equity Fund managed by EverSource Capital, the company said on Wednesday. IL&FS, as the promoter of IL&FS Environmental Infrastructure and Services Ltd (IEISL), held 97.54% of equity shares. The balance 2.46% was held by IL&FS Employee Welfare Trust. The entire shareholding in IEISL held by IL&FS Group has been transferred to EverEnviro Resource Management.