+
IL&FS group reduces ITPCL's debt by Rs 21.5 billion
ECONOMY & POLICY

IL&FS group reduces ITPCL's debt by Rs 21.5 billion

IL&FS Group has successfully repaid Rs 21.5 billion to senior secured lenders of IL&FS Tamil Nadu Power Company (ITPCL), including major banks like Punjab National Bank, Bank of India, and Union Bank. This payment encompasses both the principal debt and accrued interest up to September 30.

This repayment is a pivotal part of a debt restructuring plan that received approval from 88% of lenders. The initiative significantly slashed ITPCL's outstanding principal by over Rs 19 billion. As per the sanctioned plan, ITPCL's debt underwent restructuring based on the prudential framework for resolving stressed assets. The debt was categorised into a sustainable portion of Rs 42.5 billion and an unsustainable portion, including operational creditors.

These strategic moves are geared towards securing the long-term viability of the company. Prior to this repayment, ITPCL's total debt amounted to Rs 91.16 billion.

The recent repayment of sustainable debt, totalling Rs 21.5 billion, consisted of Rs 19billion in principal and Rs 2.5 billion in interests. IL&FS adheres to a revised distribution framework approved by the National Company Law Appellate Tribunal (NCLAT) in May 2022. This framework allows for interim disbursement of funds to eligible creditors, especially public funds, without waiting for the final resolution of the concerned IL&FS entity.

Additionally, IL&FS is in the advanced stages of obtaining approvals from a select group of lenders for the disbursement of an additional Rs 3 billion. The IL&FS board maintains its resolution estimate at Rs 610 billion, representing 62% of the total debt, encompassing both fund-based and non-fund-based components, which amounted to over Rs 990 billion as of October 2018.

IL&FS Group has successfully repaid Rs 21.5 billion to senior secured lenders of IL&FS Tamil Nadu Power Company (ITPCL), including major banks like Punjab National Bank, Bank of India, and Union Bank. This payment encompasses both the principal debt and accrued interest up to September 30. This repayment is a pivotal part of a debt restructuring plan that received approval from 88% of lenders. The initiative significantly slashed ITPCL's outstanding principal by over Rs 19 billion. As per the sanctioned plan, ITPCL's debt underwent restructuring based on the prudential framework for resolving stressed assets. The debt was categorised into a sustainable portion of Rs 42.5 billion and an unsustainable portion, including operational creditors. These strategic moves are geared towards securing the long-term viability of the company. Prior to this repayment, ITPCL's total debt amounted to Rs 91.16 billion. The recent repayment of sustainable debt, totalling Rs 21.5 billion, consisted of Rs 19billion in principal and Rs 2.5 billion in interests. IL&FS adheres to a revised distribution framework approved by the National Company Law Appellate Tribunal (NCLAT) in May 2022. This framework allows for interim disbursement of funds to eligible creditors, especially public funds, without waiting for the final resolution of the concerned IL&FS entity. Additionally, IL&FS is in the advanced stages of obtaining approvals from a select group of lenders for the disbursement of an additional Rs 3 billion. The IL&FS board maintains its resolution estimate at Rs 610 billion, representing 62% of the total debt, encompassing both fund-based and non-fund-based components, which amounted to over Rs 990 billion as of October 2018.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code