IL&FS: 'Red' companies increase to 82, 'Green' up at 55

Two more companies have entered the "red" list of the IL&FS group firms increasing the number of entities that cannot meet their payment obligations, not even to the secured financial creditors, to 82.

According to an affidavit filed in the National Company Law Appellate Tribunal (NCLAT) by the Ministry of Corporate Affairs (MCA), the total number of "red" companies is now 82, against the initial number of 80 firms.

The list of "green" companies also has increased by five to 55 firms, showed the affidavit.

Companies that are able to pay all payment obligations are "green", the companies only able to meet operational payments and senior secured debt obligations are "amber" and those that are unable to meet obligations to even senior secured financial creditors are categorised as "red".

The new companies in the "red" category are the Jharkhand Infrastructure Development Corporation Ltd and the Orissa Project Development Company Ltd. The companies newly classified under the "green" category are the Gujarat International Finance Tec-City Company Ltd, Managalore SEZ Ltd, New Tirupur Area Development Corporation, ONGC Tripura Power Company and Canopy Housing & Infrastructure.

After this new induction of companies under the lists, 11 firms are left out of the classification.

"The classification of the remaining 11 Indian IL&FS Group Entities is presently underway," said the affidavit.

"The aggregate debt availed by existing classified entities and the seven newly classified entities, from 'external creditors' constitutes approximately 99.5 per cent of the domestic IL&FS group external funds based debt."

On Tuesday, the NCLAT adjourned the matter till May 29.

After the fresh categorisation, the appellate tribunal asked the government to file an affidavit detailing the present financial status of the companies and if their categorisation can be changed among "green", "amber" and "red" categories.

--IANS

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