IL&FS pays Rs 2,150 cr to creditors of Tamil Nadu power arm

IL&FS Group has repaid Rs 2,150 crore to senior secured lenders of IL&FS Tamil Nadu Power Company (ITPCL) including Punjab National Bank, Bank of India, and Union Bank. It comprised both principal debt and accrued interest as of September 30.

The repayment is part of a debt restructuring plan approved by 88% of lenders and it has reduced ITPCL's outstanding principal by more than Rs 1,900 crore.

Under the approved plan, ITPCL's debt has been restructured as per the prudential framework for the resolution of stressed assets, where debt has been categorised into a sustainable portion of Rs 4,250 crore, as well as unsustainable portion and operational creditors.

This is part of steps aimed at ensuring the company's long-term viability. Prior to the latest repayment, ITPCL had a total debt of Rs 9,116 crore.

The latest repayment of sustainable debt of Rs 2,150 crore comprised Rs 250 crore in interest besides Rs 1,900 crore in principal.

IL&FS is following a revised distribution framework, which was approved by the National Company Law Appellate Tribunal (NCLAT) in May 2022. This allows for the release of funds to eligible creditors, particularly public funds, on an interim basis, without waiting for the final resolution of the concerned IL&FS entity.

The company is also in an advanced stage of obtaining approvals from a select group of lenders for the disbursement of an additional Rs 300 crore. The IL&FS board has retained its Rs 61,000 crore resolution estimate, representing 62 per cent of the total debt, including both fund-based and non-fund-based components, which stood at over Rs 99,000 crore as of October 2018.

Last week, IL&FS Financial Services (IFIN) approved an interim distribution payout of Rs 807 crore, marking the second such payout by the company this year.

IL&FS has also concluded interim distribution payments for several subsidiaries, including Rs 623.3 crore for Rapid Metro Gurgaon (RMGL), Rs 1,273 crore for Rapid Metrorail Gurgaon South (RMGSL), Rs 920 crore for Chenani Nashri Tunnelway (CTNL), and Rs 919 crore for Khed Sinnar Expressway.