Creditors of IL&FS financial services to get Rs 3,200 crore

NEW DELHI: IL&FS Financial Services’ creditors, including 28 lenders and debenture holders, will get an interim amount of Rs 3,200 crore, making it the largest cash payout since the government superseded its board in October 2018.

The IL&FS group would also pay back another Rs 1,900 crore for three of its other firms, making the aggregate payout at Rs 5,100 crore, it said on Monday. In the wake of financial misdoings coming to light, the corporate affairs ministry had superseded the board of IL&FS in October 2018. The group had a debt of more than Rs 95,000 crore among nearly 347 group entities when the crisis came to light in October 2018. Since the resolution began, the group has so far discharged debt worth Rs 27,000 crore.

Banks have secured exposure of over Rs 7,500 crore to IL&FS Financial Services Ltd (IFIN) which will be resolved with a combination of cash payout under the interim distribution plan and allocation of InvIT (Infrastructure Investment Trust) units by way of an IPO later, sources said.

The payout process has been initiated from Monday and will be completed over the next few weeks, one of the sources said.

As part of the interim distribution, the group will be paying a total of Rs 3,200 crore to eligible creditors of IFIN. The amount is being distributed in accordance with the revised distribution framework that was approved by the National Company Law Appellate Tribunal (NCLAT).

With the latest IFIN payout, the group has agreed to pay around Rs 5,100 crore to the eligible creditors across these three companies