While sale processes of some assets have progressed, IL&FS has faced significant delays in the InVIT route it took to resolve some of the road assets, as lenders, concessionaires didnt agree on the terms. Even as there are stiff targets for filing resolutions of remaining companies, at least two dozen are likely to drag on to FY25, show latest filings.
Investigation had been ordered by the Ministry of Corporate Affairs into IL&FS (Infrastructure Leasing and Financial Services) and its subsidiary companies in 2018.
IL&FS had plans to transfer around a dozen road assets to the InvIT, Roadstar Infra Investment Trust (RIIT). While it has already transferred five of the assets, the transfer of another five is delayed due to legal challenges by lenders and other issues. The process of transferring one asset is progressing, while it has excluded another from the process.
State Bank of India (SBI) and IL&FS have different views on debt restructuring at ITPCL, the bankrupt financier s power joint venture entity. SBI wants an assessment of the liquidation value before signing on the proposal, while IL&FS, as part of its resolution framework, is not obligated to undertake a liquidation assessment for this asset. Last month, lenders approved a restructuring plan for ITPCL, with 59% of its debt classified as sustainable and the remaining 41% converted into non-convertible debentures. ITPCL operates a 1,200-MW power plant in Tamil Nadu.
If you look at it, we are naturally hedged but 58% of a book is fixed rate and 42% is floating rate and you will start seeing the advantage of a fixed rate book with the declining interest rate and you will see NIMs expansion as a consequence of that.