NCLAT seeks details of IL and FS’ dues

IL&FS Financial Service
IL&FS Financial Service

New Delhi, March 29 (IANS) The National Company Law Appellate Tribunal (NCLAT) on Friday told the board of the cash-strapped IL&FS to submit the details of the group’s dues.

The matter has been adjourned till the next hearing on April 8.

The Delhi-based appellate tribunal also said that there would be no stay on the government’s resolution plan for the companies of IL&FS, however, all the steps regarding resolution of the group companies would have to be cleared by the appellate tribunal.

On Friday, the lenders of IL&FS asked the tribunal to direct the “amber” companies to discharge their dues to senior secured financial creditors.

Under the resolution plan, the government has categorised IL&FS group companies into green, amber and red categories based on their financial positions.

Firms classified as “green” would continue to meet their payment obligations, while “amber” category firms can meet only operational payment obligations to senior secured financial creditors.

Those under the “red” category are the entities which cannot meet their payment obligations at all.

Last year, the Central government superseded the management of the beleaguered company through a National Company Law Tribunal (NCLT) order and appointed a six-member board led by Uday Kotak, MD and CEO of Kotak Mahindra Bank, to restore its financial solvency.

Key public sector lenders and undertakings, such as the Life Insurance Corporation of India and the State Bank of India, have a 25.34 per cent and 6.42 per cent stake, respectively, in the firm which has around Rs 91,000 crore in long-term debt.

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