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Mumbai: IL&FS has initiated interim distribution payout with Rapid Metro Gurgaon Rail Ltd (RMGL), an IL&FS group company.
The Group has completed disbursement of Rs 623.38 crore on interim basis to RMGL’s secured creditors/secured financial creditors including Union Bank of India, Bank of India, Indian Bank, Punjab & Sind Bank, UCO Bank, Bank of Baroda. Punjab National Bank and Indian Overseas Bank.
The total demand of these creditors was Rs 715 crore.
This disbursement on an interim basis, thus, translates into recovery of about 83 per cent of these borrowers. Additional payments to unsecured financial creditors and unsecured creditors are in process.
The IL&FS Board approved this interim distribution in its Board meeting held on November 2. This is IL&FS’s first payout under the interim distribution framework where it is proposed to distribute a total of Rs 16,361 crore among selected group companies.
The proposed distribution of Rs 16,361 crore which will include Rs 11,296 crore in cash and Rs 5,065 crore in invite units is being made as per the interim distribution framework approved by the NCLAT in June this year.
The board has announced that a substantial portion (Rs 55,000 crore) of the overall resolution (of Rs 61,000 crore) will be completed within this year (subject to approvals).
However, the final resolution of the remaining IL&FS group entities (resolution value Rs. 6,000 crore) may take a significant amount of time due to the complexities involved in the process.
Hence, interim distribution was proposed to facilitate payout to all classes of borrowers (as per NCLAT approved process) provided that any excess payout during the interim phase, would be returned to the group or earlier. Final delivery stage.
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