The Infrastructure Leasing & Financial Services (IL&FS) Group has made significant strides in its ongoing debt resolution process. The company announced that it has resolved a total of Rs 35,650 crore ($4.8 billion) debt through asset monetization and settlements with banks, including interim cash distributions to lenders across various entities. This figure represents over half of the approximately Rs 61,000 crore debt it had set to resolve, inherited from the government-appointed board in October 2018.
In September, IL&FS initiated interim distributions totaling over Rs 2,400 crore in three key companies - IL&FS Limited, IL&FS Financial Services (IFIN), and IL&FS Transportation Networks Limited (ITNL). This amount is in addition to nearly Rs 7,600 crore already disbursed across 12 group companies under the approved interim distribution framework over the past year.
The first interim distribution pay-out of Rs 810 crore was initiated in the Group Holding company - IL&FS Limited. From this total, approximately Rs 180 crore was paid to a combination of 19 Indian and foreign banks and around Rs 630 crore to over 1,100 public debenture holders and others. The record date for these debenture holders was set for September 28, 2023.
In ITNL, a vertical holding company under IL&FS, an interim distribution payment of Rs 796 crore was initiated for eligible creditors. This payment included approximately Rs 305 crore for secured and unsecured creditors, around Rs 315 crore for nearly 1,300 public debenture holders and others, and Rs 176 crore for Group creditors. The record date for ITNL's debenture holders was set for October 5, 2023.
For IFIN, the IL&FS Board initiated the second tranche of interim distribution pay-out, totaling Rs 807 crore, for eligible lenders. This is in addition to Rs 3,200 crore disbursed on an interim basis earlier in the year. The record date for IFIN debenture holders was set for October 10, 2023.
The company has also completed interim distribution pay-outs to external creditors in 12 Group companies over the past year. These include payments to Rapid Metro Gurgaon Limited (RMGL), Rapid Metrorail Gurgaon South Limited (RMGSL), IL&FS Financial Services Limited (IFIN), and others.
In addition, IL&FS Group has disbursed Rs 2,150 crore to senior secured lenders in IL&FS Tamil Nadu Power Company Limited (ITPCL), covering both debt and interest due until September 30, 2023. This disbursement effectively reduces the outstanding debt of the company by over Rs 1,900 crores.
The IL&FS Board maintains its overall resolution estimate at Rs 61,000 crore, representing 62 percent of the overall fund-based and non-fund-based debt of over Rs 99,000 crore as of October 2018. The company is now in the advanced stages of securing approval from several other financial creditors to disburse an additional Rs 300 crore toward this obligation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.