Infrastructure News

Resolved debt of Rs 35,650 crore, says IL&FS group, ET Infra


The bankrupt IL&FS Group has resolved a total of Rs 35,650 crore debt by monetizing assets and settlement with banks including interim distribution of cash in companies to lenders across entities, the company said.

With these resolutions the company has completed more than half of the approximately Rs 61,000 crore debt it had set to resolve out of the about Rs 1 lakh crore debt inherited by the government appointed board in October 2018.

The infrastructure and financial services group which collapsed exactly five years ago, triggering a funding crunch for NBFCs has completed an aggregate payment of about Rs 10,000 crore by way of interim distribution across 14 companies – including two vertical holding companies IL&FS Transportation Ltd (ITNL) and IL&FS Financial Services (IFIN) and the Group holding company (IL&FS Ltd).

In September, the comapny’s board initiated its first Interim distribution pay-out of Rs 810 crore in IL&FS Ltd out of which Rs 180 crore is being paid to 19 Indian and Foreign banks and Rs 630 crore to over 1100 public debenture holders, public funds and others holding these bonds as on September 28 2023.

Separately an interim distribution of Rs 796 crore to eligible creditors ITNL has also been initiated of which Rs 305 crore is being paid lenders, Rs 315 crore to nearly 1,300 public debenture holders holding these bonds as on October 5 2023, public funds and Rs 176 crore to inter group creditors.

The amounts paid to creditors is in addition to nearly Rs 7,600 crore already disbursed across 12 group companies under the approved interim distribution framework in last one year, the company said.

“We are happy to have achieved Rs 10,000 crore pay-out under the interim distribution framework that was proposed by the new board and approved by NCLAT last year. This allowed us pay dues to eligible creditors – including several public funds and debenture holders – that are invested at the vertical holding companies and group holding company, on interim basis, without waiting for final resolution”, said Nand Kishore, managing director, IL&FS Group.

The board also initiated the second tranche of interim pay-out – of Rs 807 crore – for lenders of IL&FS Financial Services (IFIN) taking the total amount the company disbursed to over Rs 4,000 crore till date. Banks and financial institutions received Rs 574 crore while Rs 233 crore went to nearly 600 debenture holders and public funds invested at the IFIN Group level. The record date set for IFIN debenture holders has been set to October 10, 2023.

“The interim distribution pay-out to banks under these three companies has been completed while the payout to debenture holders would be done within few weeks post the respective record dates,” the company said.

In the last one-year IL&FS has completed distribution pay-outs to 12 Group companies including – Rs 623 crore in Rapid Metro Gurgaon Limited (RMGL); Rs 1,252 crore in Rapid Metrorail Gurgaon South Limited (RMGSL); Rs 3,200 crore in IL&FS Financial Services Limited (IFIN); Rs 920 crore in CNTL; Rs 253 crore in IWEL; Rs 406 crore in IEDCL and Rs 145 crore in IMICL. The Group has also paid Rs 919 crore in Khed Sinnar Expressway Limited as final distribution – which included Rs 707 crore to external creditors – earlier this year.

  • Published On Oct 3, 2023 at 03:01 PM IST

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