IL&FS group discharges debt of Rs 38,082 cr to creditors as of Sep-end

IL&FS group has discharged debt of Rs 38,082 crore to its creditors as of September 30, 2024, according to the latest status report affidavit filed by the debt-ridden firm before insolvency appellate tribunal NCLAT.

 

"As on September 30, 2024, the total debt discharged to creditors of the Respondent No 1 (IL&FS) Group aggregates to Rs 38,082 crore," the status report said. 

This includes Rs 20,289 crore from monetisation of assets, Rs 8,140 crore from auto-debits, green entity principal servicing, NFB release and Rs 9,653 crore from interim distribution. 

As per the recovery process, IL&FS' new board has been engaged in the termination of the non-fund-based limits availed by its group entities. IL&FS group is releasing and cancelling bank guarantees or letters of credits issued by them.

"These efforts (along with discharge of fund-based debt) have resulted in debt resolution of approximately Rs 8,140 crore,” it said. 

Besides, it is also paying cash through interim distribution to domestic entities as per the orders of the National Company Law Appellate Tribunal (NCLAT). 

"Accordingly, as on September 30, 2024, the total debt discharged by way of interim distribution aggregated to Rs 11,045 crore, out of which Rs 9,653 crores has been discharged to external financial creditors,” it said. 

IL&FS group is resolving the debts through monetisation and termination/ settlement of payments by its entities from the concessioning authorities and counterparty to the relevant contract. 

It has maintained an overall debt resolution target at Rs 61,000 crore. 

"On account of the various measures undertaken by it, the overall debt resolution across the Respondent No. 1 (IL&FS) Group is estimated to reach approximately Rs 61,000 crores, which aggregates to approximately 61.39 per cent of the total external debt outstanding of Rs 99,355 crore," it said. 

IL&FS Group as of October 2018, had availed fund-based debt of Rs 94,215 crores out of the total external debt outstanding of Rs 99,355 crore. 

In this, Rs 48,000 crore, which is almost 51 per cent was availed by 4 key holding companies - IL&FS Group, IFIN, ITNL and IEDCL. 

On October 1, 2018, NCLT superseded the existing board of IL&FS on the recommendation of the centre after the mega-crisis in IL&FS, which shook the finance industry. 

A new board for IL&FS, which had a debt burden of Rs 94,000 crore, was appointed to take charge of the affairs and NCLAT conceived a framework for resolution of the crisis-hit group. 

It had also granted protection to the IL&FS Companies against recovery of any further dues and immunity to the newly appointed Directors of IL&FS against any proceedings for the past actions of suspended Directors or any of the officers thereof.

As per the roadmap for IL&FS, its group companies have been categorised into three categories -- green, amber and red -- based on their respective financial positions. 

Companies under the green category are those that continue to meet their payment obligations. 

At that time IL&FS had a total of 302 entities of which 169 were domestic and the rest 133 were offshore.