'IL&FS Tamil Nadu power has Rs 3,000 cr of cash and a hurdle to resolution'

economictimes.indiatimes.com:

ITPCL) has been deadlocked with lenders demanding the distribution of cash with the company before a restructuring plan can be implemented. Although the broad contours of a restructuring plan have been agreed upon, its implementation hinges on approval from individual lenders as well as the National Company Law Appellate Tribunal (NCLAT), people familiar with the matter said. ITPCL is a special purpose vehicle promoted by IL&FS, with a 3,180 MW coal-based thermal power plant at Cuddalore in Tamil Nadu.

The company is currently operating a 1,200 MW (2x600 MW) capacity. If resolved, this will be one of the largest accounts of the infrastructure and finance company which collapsed in September 2018. Lenders want the company to distribute close to ₹3,000 crore of cash with the power producer before considering the restructuring plan.

«The cash has been collected in the company over the last five years or so and can be distributed before the approvals of restructuring are given. But the company wants to get all approvals for the restructuring first which is where there is a deadlock,» said a person familiar with the situation. There are 17 lenders to the company led by Punjab National Bank and including Union Bank of India, Bank of India, Bank of Baroda and SBI.

The restructuring plan has classified about ₹6,000 crore of sustainable debt that can be recovered. About a year ago, responding to a petition by operational creditors of the company, the NCLAT had directed lenders to also offer a «fair and reasonable» settlement to these operational creditors. «The restructuring plan envisages a recovery of about 34% or ₹450 crore on total dues of ₹1,300 crore of operational creditors.