IL&FS Completes Interim Distribution Payout of Rs1,273 Crore for RMGS
Moneylife Digital Team 09 January 2023
Infrastructure Leasing & Financial Services Limited (IL&FS), under the new management, has completed the interim distribution of Rs1,273 crore for Rapid MetroRail Gurgaon South Limited (RMGSL), an IL&FS group company. Out of Rs1,273 crore, Rs1,252 crore has been paid to the secured financial creditors of RMGSL.
 
The total claims of secured financial creditors, including Canara Bank, Union Bank, Central Bank, Punjab & Sind Bank and India International Finance Company Limited (UK), were Rs1,546 crore.  
 
The four public sector banks (PSBs) have got over 75% of the said RMGSL distribution payout. The IL&FS board had approved this payout at its board meeting held in December 2022.
 
IL&FS has already completed the interim distribution of Rs623.3 crore for Rapid Metro Gurgaon Limited (RMGL). The payout was commenced on 14 November 2022.
 
With the completion of the current interim distribution payout, IL&FS has now paid around Rs1,908 crore on an interim basis to creditors in these two companies.
 
On 14 November 2022, IL&FS had paid Rs623.3 crore to Union Bank of India, Bank of India, Indian Bank, Punjab & Sind Bank, UCO Bank, Bank of Baroda, Punjab National Bank and Indian Overseas Bank who are the secured lenders/secured financial creditors of RMGL.
 
A press release by IL&FS, dated 9 January 2023, says the interim distribution framework approved by national company law appellate tribunal (NCLAT) in June 2022 will lead to an aggregate amount of Rs16,361 crore being distributed. It includes Rs11,296 crore of cash and Rs5,065 crore of infrastructure investment trust (InvIT) units. 
 
The board of IL&FS also announced that Rs55,000 crore of the overall resolution of Rs61,000 crore will be paid out in the current fiscal year.
 
Comments
r_ashok41
1 year ago
When is retail investors getting their due.Hope it is going to happen shortly
Meenal Mamdani
1 year ago
See the success of this bankruptcy resolution with Uday Kotak, an honest businessman at the helm.
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