The government-appointed board of the debt-ridden IL&FS has started the claims management process for 70 group companies as a part of its debt resolution process, the company said in a statement on Tuesday. Grant Thornton will oversee the execution of the process.
Operational and financial creditors of the 70 companies have been invited to submit their claims with respect to liabilities up to October 15, 2018. “The claims process is being run in an effort to crystallise the financial and operational liabilities of IL&FS Group to facilitate distribution of proceeds from the resolution process,” the company said.
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In 2018, IL&FS and subsidiaries defaulted on their short-term and long-term debt obligations to the tune of Rs 91,000 crore. Lenders have an exposure of over Rs 50,000 crore in IL&FS and subsidiaries. In October 2018, the Mumbai Bench of the National Company Law Tribunal ordered the suspension of the IL&FS board, to be replaced by a government-appointed board. Uday Kotak, managing director, Kotak Mahindra Bank, was appointed non-executive chairman of the new board.
In February 2019, the new board had submitted a resolution plan to the NCLAT for the debt-ridden IL&FS group, categorising its domestic subsidiaries into green, amber, and red, according to their financial positions.