IL&FS has initiated a claims management process for its 70 Group entities in an effort to clarify financial liabilities and facilitate the settlement process.

In a letter, a copy of which is with BusinessLine , the troubled infrastructure financing company has listed out that it has classified 5 Indian group entities in the “green” category, which means it is ready to be sold off. Additionally, 2 Indian entities have been categorised as being “red”. The classification of remaining 11 Indian IL&FS group companies is presently underway, the affidavit noted. However, these remaining 11 entities account for about Rs 469.6 crore of the domestic external fund-based debt.

In October last year, the National Company Law Tribunal (NCLT)-appointed board headed by banker Uday Kotak has been tasked to ensure orderly settlement. As part of the resolution efforts, the group companies have been classified into three categories, based on their financial positions -- green, amber and red. IL&FS owes external creditors owe Rs 89,246 crore out of a total of Rs 94,215 crore. In other words, this is in excess of 90 per cent of its total debt.

Grant Thornton India has been appointed as teh claims management advisor to oversee the process, Details of the 70 entities, including forms and formats would be available on the IL&FS website to facilitate claims. All financial and operational creditors to these 70 entities have to submit proof of their liabilities claim up to October 15 last year, the note said.

The bulk of the concern remains with group companies that have been classified as “red”, which is estimated to have a loan exposure of Rs 61,375 crore. In contrast, the “green” category is estimated to have around 55 companies with a loan exposure of Rs 11,564 crore.

Already some efforts are underway. On May 19, Japanese company ORIX, which holds a 49 per cent stake in IWEL has expressed its intent to buy the remaining 51 per cent stake.

Further, IL&FS is also in talks with ONGC and Tripura government to come to its aid. The total loan exposure is estimated to be Rs 3,337 crore. Also, IL&FS has started discussions with the Gujarat government to buy out its debt of Rs 1,233 crore, accrued from Gujarat International Finance Tec-city Company, which is a 50 per cent joint venture with the Gujarat government, the note said.

Additionally, discussions are on with Indian Oil Corporation for valuing IL&FS Paradip Refinery Water Limited. It owes a debt of Rs 747 crore to these entities.

IL&FS has also commenced the sale process of Tamil Nadu Water Investment Company Limited and its subsidiary New Tirupur and is in talks with the Tamil Nadu government, which is a key stakeholder in both the entities. It owes a debt of Rs 579 crore to these entities.

However, for IL&FS Solar Power Limited, no bids have been received as yet for which the debt piled up is Rs 632 crore.

For Jharkand Infrastructure Implementation Company Limited, binding bids are expected by June end for buying out loans worth Rs 428 crore. The Board expects binding bids by July 15th for IL&FS Technologies which has a debt of Rs 111 crore.

Also, IL&FS Securities Services and its subsidiary ISSL Settlement and Transaction Services Limited is currently facing challenges as investigative agencies such as SFIO is investigating the matter.

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