IL&FS Group has announced the successful discharge of debts amounting to Rs 35,650 crore by September 23 – EQ
0
0
In Short : The IL&FS Group has announced the successful discharge of debt worth Rs 35,650 crore by September 23. This development represents a significant step in resolving financial challenges within the IL&FS Group. By reducing its debt burden, the company is taking essential steps toward financial stability, instilling confidence in investors, and contributing positively to India’s financial landscape.
In Detail : Company discharged the debt by way of monetisation of assets, auto debits by banks
IL&FS Group has discharged an aggregate debt of about Rs 35,650 crore, five years after the infrastructure financing and construction company was put under government control in 2018 when it defaulted on some of its debt obligations. The company discharged the debt by way of monetisation of assets, auto debits by banks, and repayment including interim distribution across entities as of September 30.
Nand Kishore, managing director of IL&FS Group, said the company has completed a Rs 10,000 crore payout under an interim distribution framework proposed by the new board and approved by National Company Law Appellate Tribunal (NCLAT) last year. The framework allowed the company to pay dues to creditors – including several public funds and debenture holders –on an interim basis without waiting for a final resolution. The creditors have invested in IL&FS’s vertical holding companies and group holding company, The interim distribution of Rs 10,000 crore was across 14 companies – including vertical holding companies IL&FS Transportation Networks Limited (ITNL) and IL&FS Financial Services (IFIN) – and the group holding company (IL&FS Limited).
The amount paid to creditors is in addition to nearly Rs 7,600 crore already disbursed across 12 group companies last year under the framework. The board has initiated its first interim distribution payout, of Rs 810 crore, in the group holding company – IL&FS Limited. Of the dividend, some Rs 180 crore is being paid to 19 Indian and foreign banks and about Rs 630 crore to more than 1,100 public debenture holders, public funds, and others. Financial institutions and banks that will be beneficiaries of the payout include Bandhan Bank, Canara Bank, UCO Bank, Bank of Baroda, Punjab and Sind Bank, and Bank of India.
The group has begun an interim distribution payment of Rs 796 crore to eligible creditors in ITNL, a vertical holding company under IL&FS. Of that amount, about Rs 305 crore is being paid to a combination of secured and unsecured creditors; about Rs 315 crore to nearly 1,300 public debenture holders, public funds, and others; and Rs 176 crore to group creditors. Some of the secured creditors of ITNL that are part of this interim distribution include Canara Bank, Bank of India, Bank of Baroda, Syndicate Bank, and South Indian Bank, said IL&FS.
