Uday Kotak: ‘Rs 50,500K crore of IL&FS debt likely to be resolved by FY21-end’

The new board of IL&FS, led by Uday Kotak, on Monday said it is likely to resolve debt worth Rs 50,500 crore by the end of the current fiscal. It has also revised the estimate for the overall debt resolution to 57 per cent and termed it “significantly higher than the average realisation for financial creditors under the Insolvency and Bankruptcy Code (IBC) process”. The company said the cumulative debt to be resolved is Rs 57,000 crore, from IL&FS Group’s total debt of around Rs 99,000 crore.

“The COVID-19-led lockdown has impacted our ability to conclude timelines. It has impacted the sale of real estate assets and there could be an impact on valuations,” said Uday Kotak, non-executive chairman of IL&FS Group, adding that the pandemic has also delayed the recoveries in IL&FS Financial Services Ltd (IFIN).