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

PTC India Financial Services (PFS) has approved resolution of its loan account in IL&FS Tamil Nadu Power Company Limited 2 x 600 MW imported coal-based thermal power project at Cuddalore in Tamil Nadu.

The resolution is in line with the lead bank Punjab National Bank. The restructuring plan includes sustainable portion (59.38 per cent) of Rs 1.25 billion proposed to be repaid in 70 structured quarterly instalments starting from December 2020 quarter till March 2038. For the unsustainable portion (40.62 per cent) of Rs 861.4 million, it is proposed that 0.001 per cent NCD(B) will be allotted to senior secured lenders and will be redeemed in two annual instalments of 50 per cent each in FY2039 and FY2040. There will also be reversal of interest on unsustainable portion and reversal of differential interest on sustainable portion taking approved rate of interest of 8 per cent as per the resolution plan (RP).