IL&FS Group today, October 3, reported a debt reduction of approximately Rs 35,650 crore as of September 30, 2023. This reduction, the company said in a statement, is attributed to asset monetisation, bank auto debits, and debt repayments across its entities.
Additionally, IL&FS Group has concluded interim distributions totaling around Rs 10,000 crore across 14 companies, including two vertical holding companies, ITNL and IFIN, and the Group's central holding company, IL&FS Limited.
“We are happy to have achieved Rs 10,000 crore pay-out under the interim distribution framework that was proposed by the new board and approved by NCLAT last year. This allowed us pay dues to eligible creditors – including several public funds and debenture holders - that are invested at the vertical holding companies and group holding company, on interim basis, without waiting for final resolution”, said Mr Nand Kishore, Managing Director, IL&FS Group.
IL&FS initiated interim distributions in three key companies - IL&FS Limited, IFIN, and ITNL - totaling over Rs 2,400 crore in September 2023. This amount being paid to creditors is in addition to nearly Rs 7,600 crore already disbursed across 12 group companies under the approved interim distribution framework in last one year, the company said.
The Board has initiated its first Interim Distribution pay-out of Rs 810 crore in the Group Holding company - IL&FS Limited. Of the total of Rs 810 crore – approx. Rs 180 crore is being paid to a combination of 19 Indian and Foreign banks and approx. Rs 630 crore to over 1,100 public debenture holders, public funds and others, IL&FS said.
The record date for the debenture holders of IL&FS Limited was set for September 28, 2023, and notable beneficiaries include Bandhan Bank, Canara Bank, UCO Bank, Bank of Baroda, Punjab and Sind Bank, and Bank of India.
IL&FS Group has also initiated an Interim Distribution payment of Rs 796 crore to eligible creditors in IL&FS Transportation Networks Limited (ITNL), a vertical holding company under IL&FS. This payment breakdown comprises approximately Rs 305 crore for secured and unsecured creditors, around Rs 315 crore for nearly 1300 public debenture holders, public funds, and others, and Rs 176 crore for Group creditors. The record date for ITNL's debenture holders is October 5, 2023, and secured creditors include Canara Bank, Bank of India, Bank of Baroda, Syndicate Bank, and South Indian Bank.
The IL&FS Board has further initiated the second tranche of Interim Distribution pay-out, totaling Rs 807 crore, for eligible lenders of IL&FS Financial Services (IFIN). IFIN had
already disbursed Rs 3,200 crore on an interim basis earlier in the year. With this additional pay-out, the company's interim distribution will have exceeded Rs 4,000 crore to date. This Rs 807 crore is distributed as Rs 574 crore to various banks and financial institutions and Rs 233 crore to nearly 600 debenture holders and public funds invested at the IFIN Group level. The record date for IFIN debenture holders is set for October 10, 2023.
The Interim Distribution pay-out to banks across these three companies has been successfully completed, with payments to debenture holders scheduled in the coming weeks following the respective record dates.
Over the past year, IL&FS has completed Interim Distribution pay-outs to external creditors in 12 Group companies, including Rs 623 crore in Rapid Metro Gurgaon Limited (RMGL), Rs 1,252 crore in Rapid Metrorail Gurgaon South Limited (RMGSL), Rs 3,200 crore in IL&FS Financial Services Limited (IFIN), Rs 920 crore in CNTL, Rs 253 crore in IWEL, Rs 406 crore in IEDCL, and Rs 145 crore in IMICL, it said.
The Group also fulfilled its commitment to pay Rs 919 crore in Kheed Sinnar Expressway Limited as a final distribution, which included Rs 707 crore to external creditors, earlier this year.
Further, IL&FS Group has disbursed Rs 2,150 crore to senior secured lenders in IL&FS Tamil Nadu Power Company Limited (ITPCL), an IL&FS Group company. This disbursement covers both debt and interest due until September 30, 2023, as part of the debt restructuring terms approved by 88 percent of lenders. This disbursement effectively reduces the outstanding debt of the company by over Rs 1,900 crores. Notable banks benefiting from this payment include Punjab National Bank, Bank of India, and Union Bank.
The company said it is now in the advanced stages of securing approval from several other financial creditors to disburse an additional Rs 300 crore toward this obligation.
In May 2022, the NCLAT approved the Interim Distribution application of the IL&FS Board, encompassing cash pay-outs and Infit Units under select entities. This application was based on the Board's objective to release funds to eligible creditors, especially public funds, on an interim basis, without waiting for the final resolution of concerned IL&FS entities. While cash pay-outs have already been initiated across select companies through Interim Distribution, the issuance of Infit Units will be carried out closer to the IPO launch, following SEBI guidelines.
The new IL&FS Board has maintained its overall resolution estimate at Rs 61,000 crore, which represents 62 percent of the overall fund-based and non-fund-based debt of over Rs 99,000 crore as of October 2018.
(Edited by : Asmita Pant)
