IL&FS Group Achieves Breakthrough in Debt Resolution

IL&FS Group has relieved creditors of Rs 38,082 crore in debt by September 30, 2024, according to a report submitted to the insolvency tribunal NCLAT. The resolution involved asset monetisation, interim distributions, and settlement efforts, targeting an overall resolution of Rs 61,000 crore, approximately 61.39% of total external debt.

The IL&FS Group has successfully discharged Rs 38,082 crore of its debt obligations as of September 30, 2024. This development was detailed in a status report submitted to the insolvency appellate tribunal NCLAT, marking a significant step in the beleaguered company's debt resolution efforts.

Breaking down the figures, Rs 20,289 crore was obtained through asset monetisation, Rs 8,140 crore from various internal adjustments including auto-debits and green entity servicing, and another Rs 9,653 crore from interim distribution to external financial creditors. Alongside this, the group's new board has been active in terminating non-fund-based liabilities by cancelling bank guarantees and letters of credit.

With the aim to resolve Rs 61,000 crore of debt—61.39% of the external debt initially reported—the IL&FS Group's strategy also includes payment distributions under NCLAT's orders. As of October 2018, the group's total external debt was Rs 99,355 crore, with Rs 48,000 crore owed by four main holding companies. A new board was set up post-October 2018 to manage this restructuring after the previous crisis.

(With inputs from agencies.)