Mumbai, Feb 6: IL&FS Financial Services’ creditors, including 28 lenders and debenture holders, will get an interim amount of Rs 3,200 crore, making it the largest cash payout since the government superseded its board in October 2018.
The IL&FS group would also pay back another Rs 1,900 crore for three of its other firms, making the aggregate payout at Rs 5,100 crore, it said on Monday.
In the wake of financial misdoings coming to light, the corporate affairs ministry had superseded the board of IL&FS in October 2018.
The group had a debt of more than Rs 95,000 crore among nearly 347 group entities when the crisis came to light in October 2018.
Since the resolution began, the group has so far discharged debt worth Rs 27,000 crore.
Banks have secured exposure of over Rs 7,500 crore to IL&FS Financial Services Ltd (IFIN) which will be resolved with a combination of cash payout under the interim distribution plan and allocation of InvIT (Infrastructure Investment Trust) units by way of an IPO later, sources told PTI.
The payout process has been initiated from Monday and will be completed over the next few weeks, one of the sources said.
As part of the interim distribution, the group will be paying a total of Rs 3,200 crore to eligible creditors of IFIN. The amount is being distributed in accordance with the revised distribution framework that was approved by the National Company Law Appellate Tribunal (NCLAT).
Out of the total amount, around Rs 2,250 crore will be paid to 28 public sector, private and foreign banks, and about Rs 950 crore to more than 500 public debenture holders, public funds (including the EPFO and the Army Group Insurance) and others, the statement said.
This is the first interim distribution that will be completed for a vertical holding company under the IL&FS group.
The group has already completed the interim payout of Rs 623.3 crore for Rapid Metro Gurgaon and Rs 1,273 crore for Rapid Metrorail Gurgaon South for the secured financial creditors.
With the latest IFIN payout, the group has agreed to pay around Rs 5,100 crore to the eligible creditors across these three companies.
In May 2022, the NCLAT approved the interim distribution application of the IL&FS board comprising cash payout and InvIT units. (PTI)
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