IL&FS Group Begins Rs 5,000 Crore Interim Creditor Distribution
IL&FS Group has begun making an interim payment of Rs 5,000 crore as a part of its continuous debt restructuring, consisting of Rs 3,500 crore worth of units of Infrastructure Investment Trust (InvIT) and Rs 1,500 crore in cash. This payment will go towards taking care of the liabilities of the group and providing creditors with prompt payment.
The InvIT units that are being allotted form part of Roadstar Infra Investment Trust, which has six significant road assets, such as MBEL, SBHL, PSRDCL, BAEL, TRDCL, and HREL, with an enterprise value of Rs 8,576 crore. The units will be distributed through private placement prior to listing. The units are of IL&FS Limited, IL&FS Financial Services Limited (IFIN), and IL&FS Transportation Networks Limited (ITNL).
This interim distribution will take IL&FS' aggregate resolved debt to around Rs 43,000 crore, marking over 70% of its total Rs 61,000 crore resolution size. In the last two years, the group has made more than Rs 12,000 crore payments to creditors, and with this distribution, the total payout will cross Rs 17,000 crore.
Nand Kishore, the Chairman and MD of IL&FS Group, emphasized the importance of this settlement, saying it settles six landmark road assets by the InvIT route and achieves timely settlements for creditors, which include public monies invested at the holding level.
The February 17, 2025, date is fixed by IL&FS Board as the record date for distributing InvIT units and cash.
