The National Company Law Appellate Tribunal has directed the new board of the debt-ridden IL&FS Group to distribute Rs 16,361 crore of cash and InvlT units available across the group to its creditors on pro-rata basis.

The National Company Law Appellate Tribunal (NCLAT) has directed the new board of the debt-ridden IL&FS Group to distribute Rs 16,361 crore of cash and InvIT units available across the group to its creditors on pro-rata basis. The interim distribution award of Rs 16,361 crore includes Rs 11,296 crore in cash and Rs 5,065 crore in InvIT units (Infrastructure Investment Trusts) and a majority of this is to be distributed to the creditors of three large group firms — IL&FS, IFIN and ITNL, said an order by a two-member NCLAT bench headed by chairperson Justice Ashok Bhushan.

The National Company Law Appellate Tribunal has directed the new board of debt-ridden IL&FS Group to distribute Rs 16,361 crore of cash and InvIT units available across the group to creditors on a pro-rata basis

The National Company Law Appellate Tribunal has directed the new board of the debt-ridden IL&FS Group to distribute Rs 16,361 crore of cash and InvIT units available across the Group to its creditors on pro-rata basis. The interim distribution award of Rs 16,361 crore includes Rs 11,296 crore in cash and Rs 5,065 crore in InvIT units (Infrastructure Investment Trusts) and a majority of this is to be distributed to the creditors of three large group firms— IL&FS, IFIN and ITNL.

The National Company Law Appellate Tribunal (NCLAT) has directed the new board of Infrastructure Leasing and Financial Services (IL&FS) to distribute Rs 16,361 crore of cash and InvIT units to creditors on a pro-rata basis. "The interim distribution shall be confined only to the entities as reflected in Annexure-6, except those excluded and for the amount of Rs 16,361 crore, that is Rs 11,296 crore of cash and Rs 5,065 crore of InvIT units," said the NCLAT in its order on May 31.

The National Company Law Appellate Tribunal (NCLAT) has directed the new board of the debt-ridden IL&FS Group to distribute Rs16,361 crore of cash and InvIT units available across the group to its creditors on pro-rata basis.

The National Company Law Appellate Tribunal (NCLAT) has directed the new board of Infrastructure Leasing & Financial Services (IL&FS) to pay lenders on a pro-rata basis first as opposed to the normal course of payment prescribed under Section 53 (distribution of assets) of the Insolvency and Bankruptcy Code (IBC). This will be done as part of the interim distribution. "We are of the view that IL&FS and its entities may take all steps to complete the resolution process as per the resolution framework and submit their application for approval before the NCLT by June 30, 2022," the NCLAT said.

After selling its iconic headquarters in Mumbai's business district, crisis-hit non-banking finance company Infrastructure Leasing & Financial Services (IL&FS) has put more commercial properties on the block, including two standalone prime properties, Business Arcade and IL&FS House in Mumbai. Property consultants said the monetisation of these properties owned by the company and its wholly owned subsidiaries is expected to fetch over 7700 crore given their location and size. "We confirm putting these properties up for sale. The sale of real estate assets forms part of the overall resolution plan undertaken by the new board," said IL&FS' spokesperson, Sharad Goel. However, he declined to comment on the likely recovery to be made through these deals.

A government committee has suggested Rs 6.05-7.03 per unit variable tariff for six plants using imported coal that are owned by companies such as Tata Power, Essar Power and JSW Energy, said people with knowledge of the matter, marking a step toward restarting them to ease the electricity shortage. The power companies said the tariffs are good enough for them to start generation, but state electricity distribution companies that have purchase agreements with these plants said they were examining the rates. These are benchmark tariffs that are proposed to be revised weekly or fortnightly in line with international coal prices for units that have a cumulative 8.2 GW capacity Some of this capacity is expected to be operational in the next 20 days. The parties involved can either agree to this benchmark or reach mutual agreement on different tariffs. In case state distribution companies do not buy this power, these plants will still have to operate but sell electricity on the power exchanges. The committee has calculated tariffs for six of the 13 imported coal-based plants mandated to run under the Section 11 order invoked by the power ministry on May 5 to ease power and domestic coal availability, amid projections of 220 GW electricity demand this summer.

Lenders, including the State Bank of India, Punjab National Bank and Bank of Baroda, have agreed to extend fresh working capital loans to six power projects lying idle for the past many years, including four imported coal-based units. Also, sector-specific lenders Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have initiated discussions with several units that are either shut or are operating at very low plant load factor. The lenders' moves follow the directions given by the Union power ministry to them to help the stuck power plants resume generation with working capital support. The government reckons that the electricity shortage in the country may not show any let¬up over the next few weeks due to the high demand in the scorching summer.