IL&FS Group initiates Rs 5,000 crore interim payout to eligible creditors

Post this payout, the company said that the aggregate debt discharged will stand at approximately Rs 43,000 crore, which is over 70% of estimated total debt resolution target pegged at Rs 61,000 crore

The IL&FS Group on Monday said the company has initiated Rs 5,000 crore interim payout to eligible creditors as part of its ongoing resolution mandate.

Post this payout, the company said that the aggregate debt discharged will stand at approximately Rs 43,000 crore, which is over 70 per cent of the estimated total debt resolution target pegged at Rs 61,000 crore.

"IL&FS Group companies have initiated an interim distribution of Rs 5,000 crore, Rs 3,500 crore of Infrastructure Investment Trust (InvIT) units and Rs 1,500 crore in cash to eligible creditors as part of the Group's ongoing resolution efforts," the statement said.

The interim distribution is largely being initiated by three holding companies -- Infrastructure Leasing and Financial Services (IL&FS), IL&FS Financial Services (IFIN), and IL&FS Transportation Networks (ITNL) -- that collectively hold the majority of the Group's debt and nests large creditors and public funds.

Some of the Banks and Institutions that will receive units and/or cash under this phase of distribution include : Bank of Baroda, Canara Bank, SBI, ICICI Bank, DBS, LIC MF, IndusInd Bank.

The company's CMD Nand Kishore said this payout resolves six major Road assets through the InvIT route. This interim distribution will facilitate payout to creditors including several public funds that invested at holding company level.

"The public interest board is working towards expeditiously resolving the balance assets and is confident of achieving the total aggregate debt resolution target of Rs 61,000 crore," he said.