NCLAT To Decide If More IL&FS Firms Can Repay Debt
NCLAT to decide if IL&FS group companies in ‘amber’ category can service debt obligations.
Lenders to some of the entities related to Infrastructure Leasing & Financial Services Ltd. approached the NCLAT today asking it to direct group companies that can meet some obligations to clear the dues of senior secured creditors.
The lenders want the appellate tribunal to modify its order of a moratorium on these companies. The bench of Justice SJ Mukhopadhyay and Justice Bansi Lal Bhat has asked the IL&FS group to submit details of the dues, operational creditors and financial creditors of these companies.
The government, which took over the infrastructure conglomerate, had earlier categorised the group entities into three categories based on their ability to service debt:
- Red: the firms that can’t meet any debt obligations.
- Amber: the ones that can meet some debt obligations.
- Green: the firms that can meet all debt obligations.
The appellate tribunal on Feb. 11 had lifted the moratorium on the companies under the green category, allowing them to repay debt obligations.
On Feb. 25, the tribunal passed an order barring banks and financial institutions from declaring IL&FS and its subsidiaries as non-performing asset. The Reserve Bank of India in March approached the NCLAT seeking modification of that order.
The next hearing is scheduled for April 8.
