IL&FS has settled Rs 35,650 crore of its Rs 99,000 crore dues till Sep: Group MD

Mumbai: The IL&FS Group has settled around Rs 35,650 crore of its total debt of Rs 99,000 crore through asset monetisation, auto debits by banks and repayments as of September.

In a statement on Tuesday, the group said it has completed a repayment of around Rs 10,000 crore by way of interim distribution across 14 companies.

These include two vertical holding firms IL&FS Transportation Networks (ITNL) and IL&FS Financial Services (IFIN), and the group holding company IL&FS Ltd.

The group has repaid around Rs 35,650 crore of its total debt of Rs 99,000 crore till September through asset monetisation, auto debits by banks and repayments, including interim distribution across group entities, IL&FS Group Managing Director Nand Kishore said.

"We are happy to have achieved Rs 10,000 crore payout under the interim distribution framework that was proposed by the new board and was approved by the NCLAT last year," he said.

This allowed the group to pay dues to eligible 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 the final resolution, he said.

The group initiated interim payouts to eligible creditors of IL&FS, IFIN, and ITNL, totalling over Rs 2,400 crore in September.

The amount is in addition to nearly Rs 7,600 crore already disbursed across 12 group companies under the approved interim distribution framework in the last one year, the statement added.

The board has initiated the first interim payout of Rs 810 crore with respect to IL&FS Ltd.

Out of the total amount, Rs 180 crore will be paid to 19 domestic and international banks and around Rs 630 crore to over 1,100 public debenture holders, public funds and others, the statement said.

The record date for the debenture holders of IL&FS was September 28.

Some of the beneficiaries of this payout include Bandhan Bank, Canara Bank, UCO Bank, Bank of Baroda, Punjab & Sind Bank, and Bank of India.

The group has initiated an interim payment of Rs 796 crore to eligible creditors in ITNL.

From the total amount, Rs 305 crore will go to secured and unsecured creditors, Rs 315 crore to about 1,300 public debenture holders, public funds and others, and Rs 176 crore to group creditors.

The record date is October 5, as per the statement.

The beneficiaries include Canara Bank, Bank of India, Bank of Baroda, Syndicate Bank, and South Indian Bank.

Further, the board has initiated the second tranche of interim payout of Rs 807 crore to eligible lenders of IFIN.

Out of the total payout, Rs 574 crore will go to banks and financial institutions and Rs 233 crore to nearly 600 debenture holders and public funds. The record date is October 10.

IFIN completed a payout of Rs 3,200 crore on an interim basis earlier this year, pushing the total disbursal amount to Rs 4,000 crore, the statement said.

The interim payout to banks for the three companies has been completed while the disbursement to debenture holders will be done within a few weeks of the respective record dates.

In the last one year, the group has completed an interim payout to external creditors of 12 companies, including Rs 623 crore in Rapid Metro Gurgaon; Rs 1,252 crore in Rapid Metrorail Gurgaon South; Rs 3,200 crore in IL&FS Financial Services; Rs 920 crore in Chenani Nashri Tunnelway Ltd; and Rs 253 crore in Inox Wind Energy Ltd.

The group said it has paid Rs 919 crore with respect to Kheed Sinnar Expressway as the final distribution, including Rs 707 crore to external creditors earlier this year.

Also, it has completed disbursal of Rs 2,150 crore to senior secured lenders in IL&FS Tamil Nadu Power Company.

The disbursal reduces the outstanding debt of the company by over Rs 1,900 crore, it said, adding that some of the banks that have been paid include Punjab National Bank, Bank of India, and Union Bank.

The company is likely to secure approval from some other financial creditors, for disbursing an additional Rs 300 crore.

In May 2022, the NCLAT approved the interim distribution application of the IL&FS board comprising cash payout and InvIT (Infrastructure Investment Trust) units under select entities.

The new IL&FS board has retained its overall resolution estimate at Rs 61,000 crore.

This represents 62 per cent of the overall fund-based and non-fund-based debt of over Rs 99,000 crore as of October 2018 when the company went under resolution due to alleged management corruption and fund diversion.