+
IL&FS to resume ITPCL stake sale amid restructuring
POWER & RENEWABLE ENERGY

IL&FS to resume ITPCL stake sale amid restructuring

IL&FS will restart the stake sale process of ITPCL (IL&FS Tamil Nadu Power Co) alongside its ongoing restructuring efforts, with the new IL&FS board seeking to finalise a financial transaction advisor to facilitate the process.

At present, ITPCL is restructuring its debt under the prudential framework for resolution of stressed assets guidelines of June 7, 2019 of RBI for which it has obtained a CRISIL RP-4 rating, with sustainable debt amounting to Rs 4,250 crore. The plan involves segregating the debt into sustainable and unsustainable categories to ensure its viability.

The board had filed an application with the National Company Law Tribunal (NCLT) on January 8, 2021, seeking reliefs for implementing the ITPCL restructuring plan. However, the NCLT approved some demands but declined others and asked ITPCL to consider the claims of all operational and capital expenditure creditors.

Under the revised plan, 33.16 per cent of admitted claims will be provided to implement the restructuring plan. The operational creditors with finalised settlements are offered 33.16 per cent of their admitted claims over a five-year period upon implementing the ITPCL restructuring plan.

Also, for creditors with conditional settlements, 33.16 per cent of their admitted claims are proposed to be paid. Punjab National Bank, Bank of Baroda, LIC, SBM Bank, SBI, Union Bank of India, PFC Limited are creditors to ITPCL.

Earlier, the sustainable debt portion under the restructuring plan ensured 59 per cent recovery for secured consortium lenders.

Other financial creditors were to get 30 per cent recovery while operational & capex creditors were offered 15 per cent recovery.

Five capex creditors including China Datang Technologies, Coastal Marine Construction, Sepco III Electric Power, and Shandong Tiejun Electric submitted claims of Rs 608 crore.

NCLT in its order dated July 4, 2022, had observed that “operational creditors/ capex creditors have to be appropriately considered in a fair and reasonable resolution plan” and asked the board to file a supplementary restructuring plan in addition to the debt restructuring plan dealing with claims of operational creditors or capped creditors.

IL&FS will restart the stake sale process of ITPCL (IL&FS Tamil Nadu Power Co) alongside its ongoing restructuring efforts, with the new IL&FS board seeking to finalise a financial transaction advisor to facilitate the process. At present, ITPCL is restructuring its debt under the prudential framework for resolution of stressed assets guidelines of June 7, 2019 of RBI for which it has obtained a CRISIL RP-4 rating, with sustainable debt amounting to Rs 4,250 crore. The plan involves segregating the debt into sustainable and unsustainable categories to ensure its viability. The board had filed an application with the National Company Law Tribunal (NCLT) on January 8, 2021, seeking reliefs for implementing the ITPCL restructuring plan. However, the NCLT approved some demands but declined others and asked ITPCL to consider the claims of all operational and capital expenditure creditors. Under the revised plan, 33.16 per cent of admitted claims will be provided to implement the restructuring plan. The operational creditors with finalised settlements are offered 33.16 per cent of their admitted claims over a five-year period upon implementing the ITPCL restructuring plan. Also, for creditors with conditional settlements, 33.16 per cent of their admitted claims are proposed to be paid. Punjab National Bank, Bank of Baroda, LIC, SBM Bank, SBI, Union Bank of India, PFC Limited are creditors to ITPCL. Earlier, the sustainable debt portion under the restructuring plan ensured 59 per cent recovery for secured consortium lenders. Other financial creditors were to get 30 per cent recovery while operational & capex creditors were offered 15 per cent recovery. Five capex creditors including China Datang Technologies, Coastal Marine Construction, Sepco III Electric Power, and Shandong Tiejun Electric submitted claims of Rs 608 crore. NCLT in its order dated July 4, 2022, had observed that “operational creditors/ capex creditors have to be appropriately considered in a fair and reasonable resolution plan” and asked the board to file a supplementary restructuring plan in addition to the debt restructuring plan dealing with claims of operational creditors or capped creditors.

Next Story
Infrastructure Urban

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands ..

Next Story
Infrastructure Urban

India Unveils Rs 600 Billion Maritime Finance Push

The Ministry of Ports, Shipping & Waterways (MoPSW) hosted the Maritime Financing Summit 2025 in New Delhi, bringing together over 250 stakeholders including policymakers, industry leaders, global investors, and financial institutions. The summit, held under the ambit of Maritime Amrit Kaal Vision (MAKV) 2047, focused on transforming India into a leading maritime power with strengthened financial, infrastructural, and technological capabilities.Union Minister Sarbananda Sonowal emphasised India's strategic progress, noting that average port turnaround times have dropped from four days to u..

Next Story
Infrastructure Urban

Govt Allocates Rs 500 Million To Boost Community Radio

The Central Government, through its ‘Supporting Community Radio Movement in India’ scheme, has allocated Rs 500 million to strengthen the community radio ecosystem across the country. The initiative aims to assist both newly established and long-operational Community Radio Stations (CRSs), ensuring their relevance to local educational, social, cultural, and developmental needs.According to the policy published by the Ministry of Information and Broadcasting, CRSs may be set up by not-for-profit organisations with at least three years of demonstrated community service. These stations are ex..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?