NEW DELHI: Of the Rs 94,000 crore of the overall debt of Infrastructure Leasing and Financial Services (IL&FS), almost Rs 61,000 crore, which has been put under the red category, is difficult to recover and might turn into non-performing assets.
“As per the latest affidavit submitted by the company, about Rs 61,000 crore of outstanding debt is put under the red category. As per the internal assessment of the company, that money seems to be difficult to be recover,” a senior official from the ministry of corporate affairs told this newspaper.
The new board of the IL&FS group had classified the IL&FS group companies into three categories, namely ‘green’, ‘amber’, and ‘red’. The categorisation was based on the solvency and cash flow of each company over the next 12 months.
Companies that are able to pay all payment obligations were labeled as “green”, those only able to meet operational payments and senior secured debt obligations are “amber” and those unable to meet obligations to even senior secured financial creditors are categorised as “red”. The board has put 86 entities under the red category.