In a rare piece of positive news from the beleaguered Infrastructure Leasing & Financial Services which has an outstanding debt of about Rs 1 lakh crore, the company board said that it’s taking steps to pay off Rs 20,000 crore of debt amassed over the last nine months.
The new board is headed by veteran banker Uday Kotak, who was appointed by the government last October.
"A critical focus of the board has been to maintain a 'going concern' status for companies under the group. Towards this, as many as 55 companies were classified as 'green' which are servicing all their obligations," the company said in a statement. The group has 348 subsidiaries and associates.
The board added that resolution of debt of three ‘amber’ companies is on track which will result in these companies being re-classified as ‘green’.
The 55 group businesses that are under asset monetisation process include securities business, renewable energy, domestic road vertical, alternate investment fund management, education and thermal, the company said.
The board stated that Orix Japan, the second largest shareholder, has exercised its rights to purchase renewable energy assets for a value that would cover the entire debt of Rs 3,800 crore which will also result in an equity release in excess of Rs 500 crore for the group.