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IL&FS Reports INR22,527cr Net Loss for FY19

Professor of Financial Economics and Part-time Value Investor, Transfin.
Dec 6, 2019 6:53 AM 2 min read

IL&FS reports INR22,527cr net loss for FY19. Suzlon Energy working on a debt restructuring programme after collapse of stake sale talks.



 IL&FS reports INR22,527cr net loss for FY19.

Bad News: Debt-ridden and cash-strapped infrastructure and lending company Infrastructure Leasing & Financial Services (IL&FS) reported a standalone net loss of INR22,527cr for the fiscal to March 2019 vs INR333cr in the previous fiscal.  


IL&FS, which is currently led by a government-nominated board, reported revenue of INR824cr down from INR1,734cr in the previous year. The company’s assets shrunk to INR4148cr in FY19, from INR23,868cr in the previous year. At the same time, liabilities rose to INR21,083cr in FY19, from INR18,276cr in the previous year. Moneycontrol 

Suzlon Energy working on a debt restructuring programme after collapse of stake sale talks.

Meanwhile...: After talks for stake sale with potential buyers collapsed, wind turbine maker Suzlon Energy and its bankers are now working on a debt restructuring programme. 


Suzlon has submitted a restructuring plan to the lenders, which will split its INR7,000cr-debt into sustainable and unsustainable debt. It is also in discussion with its foreign currency convertible bondholders for settlement of borrowing which includes a waiver of considerable amount. 


The Big Picture: Suzlon defaulted on loan repayments earlier this year and its loans were categorised as NPAs. In July, Suzlon’s secured creditors signed an inter-creditor agreement to resolve the debt crisis by working with the company.


This was the second instance of a major default by the wind turbine maker. In 2012, it had defaulted on FCCB repayment, the biggest of its kind at the time. In 2013, Suzlon underwent a corporate debt restructuring for its INR9,500cr loans as it faced severe liquidity crunch and could not service debt. 


However, the company’s problems have persisted over the years as the Indian government rolled back incentives to the wind energy sector, the market shrank and competition intensified even as debt remained high. ET Power


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