IL&FS group is all set to resolve debt of Rs 55,000 crore by March, the board of the crisis-hit company has stated in its affidavit filed before the National Company Law Appellate Tribunal (NCLAT). While updating the progress of the resolution, the IL&FS board led by banker Uday Kotak said Rs 55,000 crore debt would be resolved through asset monetization, restructuring and initiatives pertaining to insolvency proceedings.
IL&FS Group will resolve debt of Rs 55,000 crore by March 2022, the board of the crisis-hit company has said in its affidavit filed before the National Company Law Appellate Tribunal (NCLAT). While updating the progress of the resolution progress, the IL&FS board, led by Uday Kotak, said Rs 55,000 crore debt would be resolved through asset monetisation, restructuring and insolvency proceeding initiatives. Some of this has already been completed while the rest is at different stages of resolution, it said in a brief snapshot on the progress made in the ongoing resolution process till December 7, 2021, and suggested estimates of progress to be made by March 2022.
IL&FS has filed a petition in the National Company Law Appellate Tribunal in Delhi seeking permission to distribute recovery proceeds to creditors. Last month, the board of the company had passed a resolution under which it proposed an interim distribution of Rs 16,200 crore (recovered by March 31,2022).
The government has moved the National Company Law Appellate Tribunal's Delhi bench,seeking approval for interim distribution of group assets worth Rs 16,200 crore to the creditors, including public funds, by March 31.
The board of debt-ridden Infrastructure Leasing & Financial Services (IL&FS) has approved a proposal enabling interim distribution of proceeds to the extent of Rs 20,000 crore by March-end (2022) from the resolution of entities of the group. An affidavit has been filed with the National Company Law Appellate Tribunal (NCLAT) by the government to permit and approve the interim distribution mechanism. After this, the proceeds can be transferred to the creditors.
The Centre has filed an application with the National Company Law Appellate Tribunal for interim distribution of Rs 16,200 crore as part of the ongoing resolution of Infrastructure Leasing and Financial Services Ltd. The application, filed with the Delhi Bench of NCLAT, seeks interim distribution of Rs 10,950 crore in cash and Rs 5,250 crore of InvIT units by March 31.
IL&FS Group has completed sale of its 35 per cent stake in Warora Chandrapur Ballarpur Toll Road Limited (WCBTRL) to its majority joint venture partner Vishvaraj Infrastructure Limited (VIL). The sale entails VIL taking over entire external debt of WCBTRL amounting to 306 crore, providing equity value of over Rs 12 crore and settling IL&FS Group dues amounting to Rs 6 crore – thereby resolving Rs 324 crore from the overall IL&FS Group debt of approx. Rs 99,000 crore, as of October 2018. The Group had already received requisite approvals from the ITNL CoC, Supreme Court Justice (retd) D K Jain and Hon’ble NCLT to complete the transaction.
In what will come as a relief for pension and provident funds, including those of army personnel as well as other creditors, IL&FS Group has proposed to distribute cash and InvIT units of nearly Rs 20,000 crore. The board, headed by banker Uday Kotak, has already held discussions with the ministry of corporate affairs (MCA) and suggest that the government approach the National Company Law Appellate Tribunal (NCLAT) to transfer the money lying with various entities after clearing some of the payments at the entity level, as well as dealing with debt of over Rs 8,500 crore, while selling some of the companies and their assets.
The exodus of independent directors at PTC India Financial Services Ltd over corporate governance issues has prompted several regulators to seek a response from the company on the allegations levelled by the directors, said two people with direct knowledge of the matter. An after-market hours filing by PTC India Financial on Wednesday said independent directors Kamlesh Vikamsey, Thomas Mathew and Santosh Nayar resigned, highlighting "instances of serious lapses in corporate governance". Describing another instance of "misleading" the investors and the board, Vikamsey said fraud committed by a borrower, IL&FS Tamil Nadu Power (ITPCL), was not reported to the board. 'The fact of fraud is camouflaged in the annexure," Vikamsey alleged. An ITPCL spokesperson said: "ITPCL loan account has not been declared a fraud by any lender till date and, as such, has not been reported as a fraud in RBI CRILC reporting. Any such information/mention of the account being declared as fraud is factually incorrect."
Brookfield Asset Management has emerged as the frontrunner to acquire IL&FS group's iconic 4.5-lakh sqft headquarters in Mumbai's Bandra Kurla Complex. While a few others, including private equity firms and real estate companies, had shown interest none of them has matched the bid by Brookfield. IL&FS board has put the group's corporate headquarters on the block as part of the resolution process to address Rs 99,000 crore of debt. Constructed in 2005, the 11-storey building was one of the earliest to come up in the business district. The IL&FS board has been seeking to realise Rs 1,000 crore from the sale of the property However, sources said that Brookfield's bid is a bit lower.