Debt-laden Infrastructure Leasing & Financial Services (IL&FS) has repaid debt of about Rs 35,650 crore as of September 30, marking a significant progress in its debt resolution process.
As per the earlier resolution plan, the newly set up IL&FS board had committed to repay Rs 61,000 crore of debt, about 62% of the overall debt of over Rs 99,000 crore as of October 2018.
The `35,650-crore payment was by way of monetisation of assets, auto debits by banks and debt repayment (including interim distribution) across entities. The group has also completed a total payment of about Rs 10,000 crore by way of interim distribution across 14 companies – including two vertical holding companies and the holding company IL&FS, it said in a statement.
Taking about the Rs 10,000 crore payout, IL&FS Group MD Nand Kishore said: “This allowed us to pay dues to creditors – including several public funds and debenture holders – that invested at the vertical holding companies and group holding company, on an interim basis, without waiting for final resolution.”
IL&FS initiated pay-outs to creditors under the interim distribution framework in three companies – IL&FS, IFIN and ITNL – totalling `2,400 crore in September. This amount paid to creditors was in addition to nearly Rs 7,600 crore already disbursed across 12 group companies, it added.
The company’s board has initiated its first interim distribution payout of Rs 810 crore in the group holding company, IL&FS. The group has also initiated an interim distribution payment of Rs 796 crore to creditors in IL&FS Transportation Networks, a vertical holding company under IL&FS.
It has also initiated a second tranche of interim distribution payout of Rs 807 crore to the lenders of IL&FS Financial Services (IFIN). With this, the company would be disbursing a total amount of over Rs 4,000 crore as interim distribution till date.
The group has completed disbursal of Rs 2,150 crore to senior secured lenders in IL&FS Tamil Nadu Power Company (ITPCL), which includes payment of debt and interest due till September 30.
In May 2022, the National Company Law Appellate Tribunal (NCLAT) approved the interim distribution application of the IL&FS board comprising cash payout and InvIT units under select entities.