Mumbai, July 14 (SocialNews.XYZ) The overall resolution of the IL&FS group companies is likely to stretch beyond the current fiscal as the group has said that around 95 entities will be addressed after FY22 which would result in a debt recovery of around Rs 3,000 crore.
Till May 31, 2021, a total of Rs 43,600 crore was the recovery addressed, which amounted to 44 per cent of the total debt. Around Rs 50,000 crore of estimated recovery is likely to be addressed by September 2021 and 95 per cent of the estimated recovery - Rs 58,000 crore - is expected to be addressed by March 2021.
The Board of IL&FS expects to address overall debt recovery of Rs 61,000 crore. The total outstanding debt of the group October 2018 stood at Rs 99,355 crore.
As per the board, the pandemic has been among the factors which have delayed the resolution process along with timelines for approvals from NCLT and NCLAT and non-receipt of annuities amounting to over Rs 700 crore.
Complex transactions involving PSUs and state government as joint venture partners and appeals filed by over 20 creditors with the Supreme Court against the Resolution Framework has also impacted the resolution process.
It has also cited coercive creditor actions in contravention of court orders such as debits without authorisation, refusal for meeting even "going concern payments" and refusal to create fixed deposits.
Pre-existing litigations and arbitrations in various entities by lenders, contractors and authorities have also impacted the process.
Source: IANS
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