NEW DELHI: IL&FS Group, in its largest interim distribution pay-out till date, will pay Rs 3,200 crore to the creditors of IL&FS Financial Services Limited (IFIN). The payout process has been initiated from Monday and will be completed over the next few weeks. 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 in a statement on Monday.
Of the total of Rs 3,200 crore, nearly Rs 2,250 crore is being paid to a combination of 28 PSUs, private and foreign banks and about Rs 950 crore to over 500 public debenture holders, public funds (including EPFO, Army Group Insurance etc) and others.
“As part of the interim distribution, IL&FS Group will be paying a total of Rs 3,200 crore to IFIN eligible creditors, which is being distributed in accordance with the NCLAT approved revised distribution framework,” said IL&FS Group in a statement on Monday.
In May 2022, the NCLAT approved the interim distribution application of the IL&FS board comprising cash payout and Infrastructure Investment Trust (InvIT) units. The corporate affairs ministry had superseded the board of IL&FS in October 2018 after reports of financial irregularities emerged.
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. This is the first interim distribution that will be completed for a vertical holding company under the IL&FS group.
The group has already completed the interim payout of Rs 623.3 crore for Rapid Metro Gurgaon and Rs 1,273 crore for Rapid Metrorail Gurgaon South for the secured financial creditors.