In the news
March 28, 2023
Time for Policy relook : Kotak
Kotak Mahindra Bank CEO Uday Kotak has called for a relook at the financial sector resolution process. He tweeted “NBFC resolution RCap, Srei experience signal poor recovery below liquidation value for creditors. The NCLT process is also tardy whether IBC or otherwise. In IL&FS too while recovery ratio is better, legal process takes long.
In the news
March 28, 2023
McLeod, IL&FS eye out-of-court fix
Bulk tea major McLeod Russel and an IL&FS arm have initiated discussion for an out- of- court settlement, which might see the tea producer coming out of CIRP (corporate insolvency resolution process). The National Company Law Appellate Tribunal (NCLAT) has fixed the date of next hearing on May 9 by which both the parties have to try for a settlement.
In the news
March 17, 2023
HDFC May Contest IL&FS Building Sale
Mortgage lender HDFC is contemplating approaching the Supreme Court to challenge a decision by the National Company Appellate Tribunal NCLAT allowing the sale of the IL&FS headquarters in Mumbai to Brookfield, a Canadian investor.
NCLAT had turned down HDFC’s appeal for a stay on the sale of the property located in the Bandra Kurla Complex, which is regarded as one of the prime locations in Mumbai’s business district. IL&FS had been permitted to sell the property after the infrastructure lending firm went bust in India’s biggest ever bankruptcy.
In the news
March 2, 2023
NCLAT Sets Aside Plea To Stay IL&FS BKC HQ Sale
The National Company Law Appellate Tribunal (NCLAT) rejected a Housing Development Finance Corp (HDFC) appeal to stay the sale of IL&FS’ headquarters in Mumbai’s Bandra Kurla Complex to a Brookfield affiliate, two sources told ET. A two-judge bench of Justice Ashok Bhushan and Dr Alok Srivastava dismissed the appeal by the leading mortgage finance lender in an order dated February 28.
In the news
February 23, 2023
NCLAT Halts McLeod Resolution Till March 27
The National Company Law Appellate Tribunal (NCLAT) has asked the interim resolution professional (IRP) of ailing tea major McLeod Russel not to take further steps in the corporate insolvency resolution process (CIRP) till the next hearing. The next hearing is scheduled on March 27 this year. Aditya Khaitan, the erstwhile chairman of the tea major, went to NCLAT challenging the National Company Law Tribunal (NCLT) order passed earlier this month. However, NCLAT has also said that the corporate debtor (McLeod) shall be run as a going concern, including the day-to-day operations.
In the news
February 21, 2023
SC Allows Running Of IL&FS Tamil Nadu Power
The Supreme Court has permitted IL&FS Tamil Nadu Power Co to continue operating its plants as their closure would adversely affect the power deficient state. The central government-controlled company, which has been running since September 2015 in Tamil Nadu, operates two imported coal- based thermal power plants of 600MW each, which supply power to approximately 4 million households. The power plants are in Chidambaram taluk of Cuddalore district.
In the news
February 20, 2023
Khaitans Move NCLAT
Aditya Khaitan, an erstwhile promoter of tea major McLeod Russel, has moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT’s order admitting the company for the corporate insolvency resolution process (CIRP). The Kolkata bench of the National Company Law Tribunal (NCLT) on February 10 admitted IL&FS Infrastructure Debt Fund's insolvency petition for initiating the CIRP against McLeod Russel India, the country's largest tea producer. IL&FS Infra Asset Management, an asset management company, manages IL&FS Infrastructure Debt Fund (IIDF). IIDF, a financial creditor to McLeod, filed the petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) for default in payment of Rs 347.47 crore as on November 12, 2019.
In the news
February 7, 2023
IL&FS Group Initiates Interim Payout Of Rs 3,200 Crore In IFIN
Infrastructure Leasing and Financial Services (IL&FS) Group on Monday said it has initiated an interim distribution payout of Rs 3,200 crore in IL&FS Financial Services Ltd (IFIN). Of the total Rs 3,200 crore, around Rs 2,250 crore is being paid to a combination of 28 public sector units, private and foreign banks.
In the news
February 7, 2023
IL&FS Initiates Interim Payout Of Rs 3,200 Crore In Group Firm
Infrastructure Leasing & Financial Services IL&FS has initiated an interim distribution payout of Rs 3,200 crore in group company IL&FS Financial Services (IFIN) to creditors, the highest till date. The group has already paid Rs 1, 900 crore for two other firms — Rapid Metro Gurgaon ( RMGL) and Rapid Metrorail Gurgaon South (RMGSL) — taking the total payout to Rs 5,100 crore in these three companies including IFIN.
In the news
February 7, 2023
IL&FS Initiates Interim Payout Of Rs 3,200 Crore In Group Firm
Infrastructure Leasing & Financial Services IL&FS has initiated an interim distribution payout of Rs 3,200 crore in group company IL&FS Financial Services (IFIN) to creditors, the highest till date. The group has already paid Rs 1, 900 crore for two other firms — Rapid Metro Gurgaon ( RMGL) and Rapid Metrorail Gurgaon South (RMGSL) — taking the total payout to Rs 5,100 crore in these three companies including IFIN.
In the news
February 7, 2023
IL&FS Fin Creditors To Get Rs 3,200-Cr Interim Payout
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 news
February 7, 2023
IL&FS Initiates Rs 3,200-Crore Payout To IFIN Creditors
IL&FS Group has initiated its largest payout till date in IL&FS Financial Services Ltd to the tune of Rs 3, 200 crore to eligible creditors. The distribution is being done as per the NCLAT approved Revised Distribution Framework.
In the news
February 7, 2023
IL&FS To Pay Rs 3,200 Crore To IFIN Creditors As Per NCLAT Framework
IL&FS Group, in its largest interim distribution pay out till date, will pay Rs 3,200 crore to the creditors of IL&FS Financial Services Limited (IFIN). The payout process has been initiated from Monday and will be completed over the next few weeks. The IL&FS Group would also pay back another Rs1,900 crore for three of its other firms, making the aggregate payout at Rs 5,100 crore, it said in a statement on Monday.
In the news
February 7, 2023
IL&FS to give Rs 3.2 cr to fin services arm’s creditors
IL&FS will distribute Rs 3,200 crore in the coming days to creditors of IL&FS Financial Services (IFIN). This is the largest interim distribution till date and will take the total cash payout to nearly Rs 5,100 crore. The IL&FS board has said that the total debt resolved so far is around Rs 57,000 crore. The interim distribution comprises the cash realised by the company
In the news
February 6, 2023
IL&FS Group initiates its largest ever interim distribution pay-out of Rs 3,200 crore in IFIN
IL&FS Group on Monday said that it has initiated an interim distribution pay-out of Rs 3,200 crore in IL&FS Financial Services Ltd (IFIN). This is the group's largest ever interim distribution pay-out, it said in a media release.
In the news
Jan 9, 2023
IL&FS Clears Rs 1,3 K Cr Dues of Canara, Others
In second payout from defunct Infrastructure Leasing & Financial Services (IL&FS) a clutch of lenders led by Canara Bank have received close to Rs 1,300 crore out of their dues totalling Rs 1,500 crore.
In the news
Dec 29, 2022
Noida: It’s patchwork to patchwork for DND as it waits for resurfacing funds
The DND Flyway remains dotted with potholes, and its bitumen layer has crumbled at many places, including at the toll plaza and loops, as the road that needs a resurfacing survives from one round of patchwork to another. Workers are engaged in repairing potholes on the Noida to Sarai Kale Khan stretch and the Sarai Kale Khan to Noida stretch. The loop connecting the Film City road to the DND will be next. But the commuting relief this will provide will only likely be shortlived, like the previous repairs.
In the news
Dec 22, 2022
IL&FS Mulls InvIT Listing After Road SPV Transfers
The new board of IL&FS proposes to list Roadstar Infra Investment Trust after completion of transfers of all planned road special purpose vehicles The transfer of nine SPVs will address a total debt of over Rs 6,800 crore across them .
In the news
Dec 22, 2022
IL&FS Transfers 2 More Road Assets Worth Rs 976 Crore To Roadstar InVIT
IL&FS on Wednesday said that it has transferred two more road projects — Hazaribagh Ranchi Expressway and Thiruvananthapuram Road Development Company — to Roadstar Infra Investment Trust at an enterprise value of Rs 979 crore. The infrastructure sector finance firm, which went under insolvency in September 2018, still has four more road special purpose vehicles with an aggregate enterprise value of Rs 5,274 crore.
In the news
Dec 15, 2022
ITNL’s A/c Recast Delayed As Auditor, Accountant Differ Over Fin Statements
Infrastructure Leasing & Financial Services (IL&FS) has told the appellate bankruptcy tribunal that the recast of the accounts of IL&FS Transportation Networks India (ITNL) has been delayed because the accountant and the auditor for the exercise have yet to agree on the new financial statements.
IL&FS had defaulted on payments in 2018. The financial crisis at the non-bank finance group came to light in July that year, when its roads subsidiary ITNL reported difficulties in making repayments due on bonds.
In the news
Dec 14, 2022
IL&FS Resolves Debt Of Up To Rs 56,943 Crore As Of Sept 30
Debt-laden Infrastructure Leasing & Financial Services (IL&FS) has resolved debt of up to Rs 56,943 crore as of September 30, an increase from Rs 55,000 crore in March, through monetisation of various assets. The debt addressed represents over 93% of the overall estimated resolution value of Rs 61 000 crore. Of the 347 entities under IL&FS Group as of October 2018, a total of 246 entities stand resolved, with debts of 101 entities (88 domestic and 13 offshore) still to be resolved, IL&FS said in an affidavit filed with the National Company Law Appellate Tribunal (NCLAT).
In the news
Dec 14, 2022
IL&FS Resolved 93% Of Target By Sept
Infrastructure Leasing & Financial Services (IL&FS) had resolved debt worth Rs 56,943 crore as of September 2022, the infra lender, which collapsed in 2018, has told the National Company Law Appellate Tribunal (NCLAT) in an affidavit. The amount addressed is almost 93 per cent of the total estimated debt that the firm had said it would resolve. IL&FS has to resolve a debt 0f Rs 61,000 crore from an outstanding amount of Rs 99,355 crore as of October 2018.
In the news
Dec 14, 2022
IL&FS Resolves Rs 56,943 Crore Debtt
Infrastructure finance firm IL&FS said it has resolved its debt of up to Rs 56,943 crore by September 30, 2022 through monetisation of various assets and reduced the number of entities to 101 from 302. The debt-ridden firm informed about the progress made in the ongoing resolution process till September 30, 2022 in an affidavit filed before the National Company Law Appellate Tribunal (NCLAT).
In the news
Dec 14, 2022
IL&FS Resolves Debt Of Rs 56,943 Cr, Reduces Number Of Entities To 101
Infrastructure finance firm IL&FS said it has resolved its debt of up to Rs 56,943 crore by September 30, 2022 through monetisation of various assets and reduced the number of entities to 101 from 302. The debt-ridden firm informed about the progress made in the ongoing resolution process till September 30, 2022 in an affidavit filed before the National Company Law Appellate Tribunal (NCLAT).
In the news
Dec 14, 2022
IL&FS Resolves Rs 57,000 Crore Debt
Infrastructure Leasing & Financial Services (IL&FS) has resolved its debt of nearly Rs 57,000 crore by September 30 2022 through monetisation of various assets.
Of the 347 entities under IL&FS group as of October 2018, 246 entities were resolved leaving 101 entities — 88 domestic and 13 offshore — to be resolved, IL&FS said. IL&FS has addressed Rs 56,943 crore debt in its ongoing resolution efforts till September 30, 2022, up from Rs 55,000 crore debt updated in March, this year.
In the news
Dec 14, 2022
Govt repays IL&FS Loans with sovereign guarantee
The government has fulfilled guarantees extended to IL&FS by repaying the Asian Development Bank (ADB) and German state-owned lender KfW the equivalent of Rs 1,109 crore and Rs 29 crore respectively. The loans were guaranteed by the government, which has now stepped into the shoes of the lenders and joined the ranks of IL&FS creditors.
In the news
Dec 7, 2022
Reimagining the Code
The low recovery rate for creditors suggests IBC needs to be far more effective; the IL&FS solution is worth a look.
Kotak Mahindra Bank vice chairman and managing director Uday Kotak’s observation that a public interest board mechanism be considered for certain cases under the Insolvency and Bankruptcy Code (IBC) need to be heeded. In a media interview, Kotak has pointed out that group resolutions via the corporate insolvency resolution (CIRP) have resulted in a low recovery rate for creditors, bringing them disproportionate pain. Moreover, resolutions for bankrupt non-banking finance companies, too, have attracted bids that are far smaller than the liquidation value. There is no doubt that in a small market, in which asset restructuring companies have limited resources, prices of assets have been beaten down due to a dearth of buyers. As Kotak said, the IBC is a fine piece of legislation but needs to be far more effective—a recovery rate of below 30% suggests it is not. So while staying within the basic tenets of the law, a public interest board for cases where the debt is more than Rs 25,000 crore could be looked at. .
In the news
Dec 7, 2022
IL&FS’ Resolution Success Lies In ‘Horses For Courses’ Strategy
Kotak Mahindra Vice Chairman and Managing Director Uday Kotak was bang on when he said in a recent media interview that there should be a rethink on the group resolution mechanism under the Insolvency and Bankruptcy Code that is yielding a resolution value of around 20 30%. Policymakers should listen to Kotak as he has walked the talk. Sample this : Under his chairmanship at the Infrastructure Leasing and Financial Services (IL&FS), the resolution process raked in 62% of the Rs 99,000 crore owed to banks, mutual funds, pension funds and others..
In the news
5 Dec 2022
Rules For Indian Financial Sector Need To Be Reviewed
Rules governing the Indian financial sector need to be rewritten to realise the economy’s growth potential, said Kotak Mahindra Bank managing director Uday Kotak. Domestic banks are losing out to global rivals without the leeway to build scale and the inability to underwrite riskier credit due to poor recoveries from bankrupt companies, he said in an interview.
India is well placed to upstage China on the global platform with the banking industry at a “Cinderella” moment that provides scope for expanding loans to deleveraged corporates, he said.
“Indian banks are losing big time to international banks,” Kotak said. “As a banker,with adequate margin, I would have been very comfortable to lend against the security of Ambuja Cements and ACC shares ” he said, referring to Adani’s buyout of the companies from Holcim.
In the news
21 Nov 2022
IL&FS Unsecured Creditors May Recover 10-20%
Unsecured creditors in Infrastructure Leasing & Financial Services (IL&FS) could recover 10-20% of their investments of over Rs 10 000 crore.
Among these creditors are private sector provident and pension funds of companies like Infosys, Tata Power and Lupin.
Government owned Food Corporation of India, State Bank of India, Indian Oil Corporation and Army pension funds like the Army Group Insurance Fund had also invested in non-convertible debentures of IL&FS.
Around Rs 16,360 crore including Rs 11, 295 crore cash and Rs 5,065 crore InvIT units — is now available across the IL&FS Group.
The new board’s proposal of interim dividend payouts across group firms including holdcos, without waiting for a final resolution was approved by the National Company Law Appellate Tribunal (NCLAT) in May..
In the news
30 Aug 2022
IL&FS Lenders to Receive Rs 16kcr in Q3
After a moratorium of over three years, IL&FS lenders will receive an estimated Rs 16,361 crore in the third quarter from the proceeds of the resolution of 191 special purpose vehicles (SPVs), said two people with knowledge of
the matter. Alvarez & Marsal and Grant Thornton are advising IL&FS on the bank-wise distribution of the proceeds from the recoveries. IL&FS had informed lenders last week that proceeds would be distributed in the third
quarter as against the initial plan of this being done in the second quarter, said one of the persons cited above.
In the news
11 Aug 2022
IL&FS's Noida Toll Bridge Company seeks Rs 100 crores for repairing DND flyway
Noida Toll Bridge Company Ltd., a Special Purpose Vehicle formed to build, own operate and transfer the DND flyway is seeking Rs 100 crores to undertake major repairs on the crucial link road between Noida and Delhi. The issue plaguing
India's first eight lane access control highway is the lack of any defined sources of income with revenue drying up following adverse positioning by state government departments in Delhi and Noida. Toll collection on the DND flyway
from commuters had been stopped in October 2016 after an Allahabad High Court order found two provisions relating to levy and collection of fee in the concession agreement to be inoperative.
In the news
2 Aug 2022
Aditya Birla MF, S'pore Fund Exit ITNL Co
Aditya Birla Sun Life Mutual Fund has exited loss-making IL&FS group-promoted Jharkhand Road Projects Implementation Company (JRPICL). It has sold its entire exposure to Edelweiss Alternative Assets Advisor Fund at a 24% discount,
said three people aware of the development.The Edelweiss fund on July 12 purchased Rs 900 crore non-convertible debentures (NCDs) from Aditya Birla Sun Life MF and a Singapore fund, whom the MF had advised.
In the news
29 Jul 2022
IL&FS exits power plant, advisory co
IL&FS has sold the 33.3% stake it held in a 44MW bagasse-based power generation plant to a Warana sugar cooperative, which holds a majority stake in the company The infra group has also sold its energy advisory business, which
was carved out of IL&FS Energy Development (IEDCL), to PTC India. IL&FS has said that the total sale consideration for the power business is Rs 77.5 crore and both the businesses do not hold debt. In the sale of its energy
advisory business, a division of IEDCL, PTC emerged as the highest bidder and the sale was completed on July 26 at a consideration of Rs 15 crore. This sale has been approved by NCLT.