IL&FS to resume ITPCL stake sale amid restructuring
POWER & RENEWABLE ENERGY

IL&FS to resume ITPCL stake sale amid restructuring

IL&FS will restart the stake sale process of ITPCL (IL&FS Tamil Nadu Power Co) alongside its ongoing restructuring efforts, with the new IL&FS board seeking to finalise a financial transaction advisor to facilitate the process.

At present, ITPCL is restructuring its debt under the prudential framework for resolution of stressed assets guidelines of June 7, 2019 of RBI for which it has obtained a CRISIL RP-4 rating, with sustainable debt amounting to Rs 4,250 crore. The plan involves segregating the debt into sustainable and unsustainable categories to ensure its viability.

The board had filed an application with the National Company Law Tribunal (NCLT) on January 8, 2021, seeking reliefs for implementing the ITPCL restructuring plan. However, the NCLT approved some demands but declined others and asked ITPCL to consider the claims of all operational and capital expenditure creditors.

Under the revised plan, 33.16 per cent of admitted claims will be provided to implement the restructuring plan. The operational creditors with finalised settlements are offered 33.16 per cent of their admitted claims over a five-year period upon implementing the ITPCL restructuring plan.

Also, for creditors with conditional settlements, 33.16 per cent of their admitted claims are proposed to be paid. Punjab National Bank, Bank of Baroda, LIC, SBM Bank, SBI, Union Bank of India, PFC Limited are creditors to ITPCL.

Earlier, the sustainable debt portion under the restructuring plan ensured 59 per cent recovery for secured consortium lenders.

Other financial creditors were to get 30 per cent recovery while operational & capex creditors were offered 15 per cent recovery.

Five capex creditors including China Datang Technologies, Coastal Marine Construction, Sepco III Electric Power, and Shandong Tiejun Electric submitted claims of Rs 608 crore.

NCLT in its order dated July 4, 2022, had observed that “operational creditors/ capex creditors have to be appropriately considered in a fair and reasonable resolution plan” and asked the board to file a supplementary restructuring plan in addition to the debt restructuring plan dealing with claims of operational creditors or capped creditors.

IL&FS will restart the stake sale process of ITPCL (IL&FS Tamil Nadu Power Co) alongside its ongoing restructuring efforts, with the new IL&FS board seeking to finalise a financial transaction advisor to facilitate the process. At present, ITPCL is restructuring its debt under the prudential framework for resolution of stressed assets guidelines of June 7, 2019 of RBI for which it has obtained a CRISIL RP-4 rating, with sustainable debt amounting to Rs 4,250 crore. The plan involves segregating the debt into sustainable and unsustainable categories to ensure its viability. The board had filed an application with the National Company Law Tribunal (NCLT) on January 8, 2021, seeking reliefs for implementing the ITPCL restructuring plan. However, the NCLT approved some demands but declined others and asked ITPCL to consider the claims of all operational and capital expenditure creditors. Under the revised plan, 33.16 per cent of admitted claims will be provided to implement the restructuring plan. The operational creditors with finalised settlements are offered 33.16 per cent of their admitted claims over a five-year period upon implementing the ITPCL restructuring plan. Also, for creditors with conditional settlements, 33.16 per cent of their admitted claims are proposed to be paid. Punjab National Bank, Bank of Baroda, LIC, SBM Bank, SBI, Union Bank of India, PFC Limited are creditors to ITPCL. Earlier, the sustainable debt portion under the restructuring plan ensured 59 per cent recovery for secured consortium lenders. Other financial creditors were to get 30 per cent recovery while operational & capex creditors were offered 15 per cent recovery. Five capex creditors including China Datang Technologies, Coastal Marine Construction, Sepco III Electric Power, and Shandong Tiejun Electric submitted claims of Rs 608 crore. NCLT in its order dated July 4, 2022, had observed that “operational creditors/ capex creditors have to be appropriately considered in a fair and reasonable resolution plan” and asked the board to file a supplementary restructuring plan in addition to the debt restructuring plan dealing with claims of operational creditors or capped creditors.

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