Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) has repaid a debt of about Rs 35,650 crore as of 30 September, marking a significant step in its debt resolution process.
The newly set up IL&FS board had to repay Rs 61,000 crore of debt, about 62 per cent of the overall debt of over Rs 99,000 crore as of October 2018, as per the resolution plan.
The auto-debits by banks, monetisation of assets and debt repayment (including interim distribution) across entities amounted to Rs 35,650 crore. By way of interim distribution across 14 companies– including two vertical holding companies and the holding company IL&FS, the group has also completed a total payment of about Rs 10,000 crore, it said in a statement.
IL&FS Group MD, Nand Kishore stated, "This enabled us to make interim payments to creditors, including various public funds and debenture holders, who had invested in the vertical holding companies and group holding company, without having to wait for a final resolution."
IL&FS commenced payments to creditors using the interim distribution framework across three companies – IL&FS, IFIN, and ITNL – amounting to Rs 2,400 crore in September. This sum, disbursed to creditors, was supplementary to the nearly Rs 7,600 crore already distributed across 12 group companies, it further stated.
The board of the company has commenced its initial interim distribution payment of Rs 810 crore in the group's holding company, IL&FS. Additionally, the group has also initiated an interim distribution payout of Rs 796 crore to creditors in IL&FS Transportation Networks, which is a vertical holding company within IL&FS.
The company has also initiated a second installment of interim distribution payment of Rs 807 crore to the lenders of IL&FS Financial Services (IFIN). This will bring the total amount disbursed as interim distribution to over Rs 4,000 crore till date. The group has also successfully distributed Rs 2,150 crore to senior secured lenders in IL&FS Tamil Nadu Power Company (ITPCL), covering both debt and interest owed until September 30.
In May 2022, the National Company Law Appellate Tribunal (NCLAT) granted approval to the IL&FS board's interim distribution proposal, which included cash payout and InvIT units for select entities.