IL&FS says aims to resolve nearly 60% of debt despite Covid-19 delays resolution process

MUMBAI/BENGALURU: The Uday Kotak led IL&FS board has set an ambitious target of recovering Rs 50,500 crore loans or about half of the Rs 1 lakh crore total due to the debt laden infratructure and financial services conglomerate by March 2021 and expects to finally resolve a total of Rs 57,240 crore which is about 57% of the loans due to the group, the company said in a press briefing.

Recovery of loans will be done through a combination of outright sale, restructuring of debt, transferring road assets to infrastructure investment trusts (InvITs) or seeking prepayment from concession authorities, the presentation shared by the board showed. However, board members acknowledged judicial delays, pull out by bidders post Covid 19 and a slowdown in the economy could pose challenges to their target.