IL&FS group companies labeled green allowed to start servicing debt

NCLAT says if amber companies do not turn the corner by July 12 it could ask for proportionate payment to its lenders.

The National Company Law Appellate Tribunal (NCLAT) on Wednesday said that if the Infrastructure Leasing & Financial Services (IL&FS) companies placed under the amber category were not able to be reclassified into the green category by the next date of hearing on July 12, the appellate tribunal will pass orders asking such companies to service 100 per cent debt obligations of the provident and pension funds. For other lenders, the NCLAT may ask the amber companies to service the debt on a “proportionate basis”, the two-judge Bench said.

The other companies of the IL&FS which are or get re-classified under the