HERE IS WHY overall resolution of IL&FS group companies may stretch beyond current fiscal
The Board of IL&FS expects to address an overall debt recovery of Rs 61,000 crore.
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.
See Zee Business Live TV Streaming Below:
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.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
EPFO Pension Schemes: Early pension, retirement pension, nominee pension and 4 other pension schemes that every private sector employee should know
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
04:01 PM IST