Only 18% of IL&FS debt resolved so far

The bulk of the resolution had been expected to be complete by March 2020, but the board said that there were legal and regulatory delays and Covid-19 has slowed down resolution further.

The Uday Kotak-led board of directors of Infrastructure Leasing and Financial Services (IL&FS) has been able to resolve only 18% of the company’s outstanding debt of more than ₹1 lakh crore, nearly two years after taking control of the bankrupt shadow banker and construction firm.

The bulk of the resolution had been expected to be complete by March 2020, but the board said that there were legal and regulatory delays and Covid-19 has slowed down resolution further.

The board set a new resolution timeline and said it will be able to resolve ₹50,590 crore of outstanding debt by March 2021 and a further ₹6,650 crore in FY22.

The expected resolution proceeds total ₹57,240 crore, amounting to 57% of debt outstanding. “The revised value accounts for more than 57% of the overall debt and is significantly higher than the average realisation, till date, for financial creditors under the Insolvency and Bankruptcy Code process,” it said in a press release.