IL&FS Solar Power Limited (ISPL) has paid its entire debt amounting to nearly Rs 845 crore to its creditors – including financial and operational debt, thereby helping the IL&FS Group move ahead with the resolution process. This follows pre-payment by Embassy Energy Private Limited (EEPL) for the financial assistance provided by ISPL.
The repayments by IL&FS Solar also cover tax and statutory dues, without any preference to any creditor or class of creditors, IL&FS group said in a statement.
ISPL had undertaken construction and financing of a 100 MW solar power project in Bellary district, Karnataka, for Embassy Energy Private Limited (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).
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. The money from EEPL was payable to ISPL over the next 12 years with the last instalment falling due in February 2033. This pre-payment by EEPL has further enabled ISPL to repay its debt.
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 vide its order dated March 12, 2020.
This payment by ISPL supports the overall resolution process for the IL&FS Group. It 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, IL&FS said.