New Delhi: As a relief to the Army jawans as well as other creditors including pension and provident funds, IL&FS Group has proposed to disburse cash and invitation Units worth around Rs 20,000 crore.
banker’s board shining box, has already held consultations with the Ministry of Corporate Affairs (MCA) and suggests that the Government may approach National Company Law Appellate Tribunal ,NCLAT) to move money lying with various entities while selling certain companies and their assets, after clearing certain payments at the entity level as well as dealing with debt of over Rs 8,500 crore.
“The new IL&FS board had proposed interim distribution of resolution proceeds to MCA and has filed this framework with NCLAT for approval. Once approved, it will allow disbursement of cash and InvIT units over Rs 20,000 crore, without waiting for the final resolution of individual entities,” an IL&FS spokesperson said in response to a TOI questionnaire.
By the end of December, 191 IL&FS Group entities had resolved, with the number expected to close to 250 by the end of March. As of mid-December, Rs 16,742 crore is available with various group entities from asset sales, according to data shared with the government. Again, by the end of the current financial year, this number is expected to increase to Rs 21,300 crore, which will be available in the form of cash and InvIT units. As of December, about Rs 7,000 crore has been received from the sale of assets directly to creditors and Rs 8,650 crore loan has been taken by the buyer. The rest of the money is lying with the parents of entities that have been sold or whose assets have been disposed of.
When the government acquired the IL&FS group and set up a new management, the group had liabilities of around Rs 1 lakh crore. Sources said that by March, the IL&FS board expects debt of Rs 55,000 crore to be resolved against the total estimate of Rs 61,000 crore.
banker’s board shining box, has already held consultations with the Ministry of Corporate Affairs (MCA) and suggests that the Government may approach National Company Law Appellate Tribunal ,NCLAT) to move money lying with various entities while selling certain companies and their assets, after clearing certain payments at the entity level as well as dealing with debt of over Rs 8,500 crore.
“The new IL&FS board had proposed interim distribution of resolution proceeds to MCA and has filed this framework with NCLAT for approval. Once approved, it will allow disbursement of cash and InvIT units over Rs 20,000 crore, without waiting for the final resolution of individual entities,” an IL&FS spokesperson said in response to a TOI questionnaire.
By the end of December, 191 IL&FS Group entities had resolved, with the number expected to close to 250 by the end of March. As of mid-December, Rs 16,742 crore is available with various group entities from asset sales, according to data shared with the government. Again, by the end of the current financial year, this number is expected to increase to Rs 21,300 crore, which will be available in the form of cash and InvIT units. As of December, about Rs 7,000 crore has been received from the sale of assets directly to creditors and Rs 8,650 crore loan has been taken by the buyer. The rest of the money is lying with the parents of entities that have been sold or whose assets have been disposed of.
When the government acquired the IL&FS group and set up a new management, the group had liabilities of around Rs 1 lakh crore. Sources said that by March, the IL&FS board expects debt of Rs 55,000 crore to be resolved against the total estimate of Rs 61,000 crore.
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