IL and FS adds Rs 3,333 crore cash in a liquidity boost

Moving ahead on the key objective to generate liquidity in the IL&FS Group entities, cash and cash equivalent balances have increased by Rs 3,333 crore to Rs 6,534 crore, which will help preserve value and make orderly payments, thereby aiding in the resolution of the relevant entities.

In an affidavit, IL&FS said, "Significant progress has been made by the new board (along with the assistance of the management teams of the IL&FS Group) in the resolution of the IL&FS Group (spread across business verticals and jurisdictions)".

As a result of these efforts, cash and cash equivalent balances across IL&FS Group entities has since September 30, 2018 increased by Rs 3,333 crore to Rs 6,534 crore as of November 30, 2019.

In addition to this, the solvency analysis of the domestic IL&FS Group entities has also helped identifying 57 "Green" entities, which have been servicing their debt as per the scheduled repayment date.

IL&FS said one of the key objectives of the payment protocol was to generate liquidity in the IL&FS Group entities, preserve value and make orderly payments, which would aid in the resolution of the relevant entities.

In terms of asset monetisation, in addition to the 7 wind SPVs that have been sold to Orix, significant progress has been made in respect of the asset monetisation process, each of which are in various stages of completion.

the new board along with the resolution consultant has also evaluated restructuring proposals for the "Amber" and "Red" domestic IL&FS Group Entities.

Based on certain principles adopted by the new board, 3 "Amber" entities -- MBEL, JRPICL and WGEL -- having external fund-based debt aggregating Rs 3,266 crore and internal fund-based debt aggregating Rs 1,829 crore were restructured and subsequently re-classified to "Green", which has resulted in a cumulative cash release of Rs 534 crore towards servicing of financial debt and clearing overdues of operational creditors of these entities.