ISPL repays debt amounting to nearly Rs 845 cr after EEPL clears dues


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 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, 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.

ALSO READ: IL&FS resolves Rs 1,460 crore debt in Q2; misses target due to Covid-19

This payment by ISPL supports the overall resolution process for the 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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor


Show More

Related Articles

Back to top button