The National Company Law Appellate Tribunal (NCLAT) has directed IL&FS to provide the details of the dues at 13 of its group companies and those of the creditors so that outstanding payments to lenders could be released.
All but 50 of the 169 domestic group companies of IL&FS are currently enjoying a moratorium on all financial claims against them. NCLAT has given the moratorium to allow an orderly resolution of more than Rs 91,000 crore in claims against IL&FS. “We may pass (an) order (on) slowly discharging certain liabilities (of amber companies) so that there is not a complete stoppage of payments,” the NCLAT bench led by Justice SJ Mukhopadhyaya said on Friday. The two-member NCLAT bench was hearing a plea by senior secured lenders to “amber” companies that these entities be directed to start repayments.
All group companies of IL&FS are being classified according to their ability to meet payment obligations. Group companies able to meet all payment obligations are categorised as ‘green’. Those companies able to meet only operational payments and senior secured debt obligations are categorised as “amber”. The others are categorised as “red.” Of the 169 IL&FS group companies, 50 entities have been classified as green, while 13 have been classified as amber and 80 as red. The total outstanding debt of the 13 “amber” companies is Rs 16,373 crore.
The bench also clarified that while there was no stay on the resolution of the IL&FS group companies, the board needed to seek the approval of the appellate tribunal before finalising a resolution plan for any group company. The bench said it would hear the central bank on the issue of the classification of NPAs at the next hearing, scheduled for April 9. Lenders to IL&FS group entities are currently prohibited from recognising any group account as a non-performing asset without prior permission of the appellate tribunal.
Source: Economic Times, March 30,2019