PFS approves resolution of stressed loan account in the IL&FS Tamil Nadu Power Company Limited

PTC India Financial Services (PFS) on Monday said that it has approved resolution of one of its stressed loan account in the thermal-based segment namely IL&FS Tamil Nadu Power Company Limited - 2 x 600 MW imported Coal based Thermal Power Project at Cuddalore in the state of Tamil Nadu, India.

In the regulatory filing PFS said, " As per RBI circular dated June 07, 2019, and directives of Hon'ble NCLAT, the following resolution has been approved by PFS in line with Lead Bank – PNB."

The resolutions were approved in line with the lead bank, PNB, as per RBI circular dated June 7, 2019, and directives of NCLAT. The basic features of the restructuring plan are listed below:

Restructuring of PFS debt has been done as per below:

i. Sustainable portion (59.38 per cent) of Rs 125.91 crore – proposed to be repaid in 70 structured quarterly instalments starting from December 2020 Quarter till March 2038.

ii. Unsustainable portion (40.62 per cent) of Rs 86.14 crore – proposed that 0.001 per cent NCD(B) shall be allotted to senior secured lenders for unsustainable portion and the same shall be redeemed in two annual instalments of 50 per cent each in FY 2039 and FY 2040.

iii. Reversal of interest on unsustainable portion and reversal of differential interest on the sustainable portion (for the period starting from the cut of date i.e. October 15, 2018, till proposed RP implementation date i.e. September 30, 2020) taking approved rate of interest @ 8.00 per cent as per the resolution plan.

Post-approval of the said resolution plan from NCLT/NCLAT, the loan account shall be classified under the "Green" category from "Amber" category.

It is pertinent to mention that out of total outstanding of Rs 224.95 crore (principal Rs 183.84 crore and interest Rs 41.11 crore), PFS had already made provisioning of Rs 66.39 crore as on period ended September 30, 2020, the company said in a statement.

Earlier on Sunday, the company said that it has achieved resolution of one of its NPA loan account in the hydro segment namely Dirang Energy Pvt Ltd - 2 x 72 MW Hydroelectric Project, in West Kameng District of Arunachal Pradesh. The resolution was achieved under the One Time Settlement (OTS) proposal offered by borrower's promoter company, 'Patel Engineering Ltd' (PEL) to all the consortium lenders on a bilateral basis.