PTC India Financial Services Limited to bypass Rs 125 Crore in ITPCL resolution

PTC India Financial Services Limited (PFS) has announced that it will receive its share of approximately Rs 125 Crore as part of the full resolution amount of one of its stressed loan accounts in the thermal segment, namely the power plant 2×600 MW coal fired plant located in the Cuddalore district of Tamil Nadu. This project was implemented by IL&FS Tamil Nadu Power Company Ltd. (ITPCL). PFS had sanctioned a total loan of Rs. 200 crore as part of a consortium agreement with ITPCL for the implementation of the instant project.

Currently, the IL&FS group is in the process of being resolved under the provisions of Articles 241 and 242 of the Companies Act 2013 and ITPCL has been classified as an “amber” entity, i.e. an entity that does not ” is unable to meet all of its obligations during the test period (as defined by the Hon’ble NCLAT Ordinance of October 15, 2018) but can only meet operational payment obligations and payment obligations payment to senior secured financial creditors. All stakeholders, including the lenders of the ITPCL consortium, had decided to restructure ITPCL’s debt as part of the change of ownership program in accordance with the RBI circular in force dated June 07, 2019 and the instructions of the Honorable NCLAT. Subsequently, a resolution plan was approved by the lenders in the consortium, including PFS. The resolution plan was then presented to the Honorable NCLAT and according to the oral hearing of the proceedings, it is understood that the Honorable NCLAT at its last hearing dated December 1, 2021 accepted the resolution plan submitted by PFS among the other lenders in the consortium. . A copy of the judgment order is awaited.

According to the resolution plan, PFS is expected to receive approximately Rs 16 Crore (based on the payment schedule until Q3 FY 22 according to the resolution plan) and an interest amount of approximately Rs. 11 crore shortly and balance of Rs. ~ 109 crore will be received in accordance with the repayment schedule approved under said resolution plan. This development will increase PFS ‘liquidity position and also lead to a reduction in its stressed asset portfolio. Going forward, this will also have a positive impact on returns and PFS spread as this account was reflected in assets but did not generate any income. In addition, this is in line with PFS’s desire to reduce its exposure to thermal active ingredients and to contribute to carbon neutrality.

Besides the instant loan account, PFS in the past three years i.e.FY18-19, FY19-20 and FY 20-21 also resolved 10 other troubled accounts (main cumulative outstanding ~ Rs. 1,161 crores) through a multi-pronged approach such as sale to ARC, resolution under IBC in NCLT, acquisition and sale of assets under SARFAESI and through the One Time Settlement (OTS) offer of the promoter or new developer. PFS is also in the advanced stages of resolving another troubled loan account. With the resolution of the captioned loan account, a significant improvement in PFS net NPA is expected. The total PFS exposure in the Instant Stressed Account was Rs 200 Crore. PFS had already provided for the remaining balance after the resolution amount.

PTC India Financial Services Limited shares were last trading on BSE at Rs. 6.30pm from the previous close of Rs. 6.45pm. The total number of shares traded during the day was 92,556 in over 397 trades.

The action hit an intraday high of Rs. 18.75 and an intraday low of 18.25. The net turnover during the day was Rs. 1,715,392.00.

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