IL&FS Solar Power repays entire Rs 845 crore debt
IL&FS Solar Power repays entire Rs 845 crore debt

Debt-laden IL&FS on Thursday said its group company IL&FS Solar Power Ltd (ISPL) has paid its entire debt of around Rs 845 crore to all its creditors.

This repayment supports the overall resolution process for IL&FS Group and will be a key intermediate step in the resolution of ISPL, an entity for which no bids were received pursuant to the publicly solicited bid process launched in November 2018, the group said in a release.

"ISPL has paid its entire debt amounting to nearly Rs 845 crore across all its creditors - including financial and operational debt, tax and statutory dues, without any preference to any creditor or class of creditors," it said.

ISPL had undertaken construction and financing of a 100 MW AC solar power project in Bellary district, Karnataka, for Embassy Energy Private Ltd (EEPL) that was commissioned in February 2018.

ISPL had raised secured and unsecured loans for this project. EEPL, as the owner of the project, was servicing ISPL through an EMI structure under the terms of Deferred Payment Agreement (DPA), the group said.

It said EEPL, in exercise of its rights under DPA, has pre-paid the financial assistance extended by ISPL towards the project.

The prepayment by EEPL has enabled ISPL to recover the amounts due to it under the DPA, which otherwise would have been payable to ISPL over the next 12 years with the last instalment falling due in February 2033, the release said.

"This prepayment by EEPL has further enabled ISPL to repay its debt," it said.

The group said ISPL will continue to provide certain operational services to EEPL in respect of the above project until its final resolution in accordance with the Resolution Framework approved by NCLAT.

The group's overall debt stood at over Rs 99,000 crore as of October 2018. It plans to resolve over 50 per cent of this debt in the current financial year.

(To download our E-paper please click here. The publishers permit sharing of the paper's PDF on WhatsApp and other social media platforms.)

Free Press Journal

www.freepressjournal.in