Infrastructure Leasing and Financial Services Group will pay ₹32 bln to banks and debenture holders of IL&FS Financial Services Ltd as part of its interim distribution payout process, the company said in a press release.
Of the total of ₹32 bln, about ₹22.5 bln will be paid to a combination of 28 state-owned, private and foreign banks, and 9.5 bln rupees to over 500 public debenture holders, public funds including Employees Provident Fund Organisation, and Army Group Insurance among others.
"This is the first interim distribution that will be completed for a vertical holding company under the IL&FS Group," the release said.
In May 2022, the National Company Law Appellate Tribunal had approved the interim distribution cash pay-out and Infrastructure Investment Trust units under select entities.
"While IL&FS has already initiated process for cash pay-out across select companies through Interim Distribution, the issuance of InvIT units would be undertaken by way of IPO (initial public offering) that will be launched as per SEBI (Securities and Exchange Board of India) guidelines," the company said.
The management team, which has seen steering the resolution process of IL&FS Group's nearly 1-trln-rupee debt since October 2018, has retained its overall resolution estimate at 610 bln rupees, which represents 62% of the total dues.
On completion of 32-bln-rupee interim distribution pay-out, IL&FS Financial Services' debt of 270 bln rupees will be resolved by way of monetisation of assets and debt repayment across the IL&FS Group, the release said.
