IL&FS initiates claims process for 70 group companies, may receive claims worth over Rs 50,000 crore

Industry sources said the 70 companies account for a large part of the group's overall debt and claims worth over Rs 50,000 crore are expected to be filed by creditors in this process

By PTI  
Wednesday, May 22, 2019

IL&FS has initiated a comprehensive claims management process for 70 group entities and claims worth over Rs 50,000 crore are expected to be filed by creditors, according to industry sources.

The new board of IL&FS Group, which has a debt burden of more than Rs 90,000 crore, as well as the government are working on ways to address the issues.

The IL&FS board has initiated a comprehensive claims management process for 70 group entities, a statement said on Tuesday.

Industry sources said the 70 companies account for a large part of the group's overall debt and claims worth over Rs 50,000 crore are expected to be filed by creditors in this process.

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"The claims process is being run in an effort to crystallise the financial and operational liabilities of IL&FS Group to facilitate distribution of proceeds from the resolution process," the statement had said.

Grant Thornton India LLP is the claims management advisor for overseeing and executing the process.

The distribution of claims amount would be in accordance with the proposed resolution framework filed with the National Company Law Appellate Tribunal (NCLAT) by the the government.

ALSO READ: IL&FS begins claim process for 70 group entities

"All financial and operational creditors to these 70 entities are invited to submit a proof of their claim in respect of liabilities due up to and including October 15, 2018 to Grant Thornton," the statement had said.

On Tuesday, the corporate affairs ministry informed the NCLAT that the resolution process for 10 profitable IL&FS group companies, having total debt of Rs 11,564 crore, was underway.

The board IL&FS has decided to adopt an "asset level resolution" with regard to various group companies and entities.

IL&FS Group comprises over 300 entities.

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