IL&FS Group initiates ₹5,000 crore payout, including InvIT units

IL&FS Group companies have initiated an interim distribution of ₹5,000 crore – including ₹3,500 crore of Infrastructure Investment Trust (InvIT) units and ₹1,500 crore in cash – to eligible creditors as part of the Group’s ongoing resolution efforts.

The interim distribution is largely being initiated by three holding companies—Infrastructure Leasing and Financial Services (IL&FS), IL&FS Financial Services (IFIN), and IL&FS Transportation Networks (ITNL)—which collectively hold the majority of the Group’s debt and nest large creditors and public funds.

The InvIT units have been issued by Roadstar Infra Investment Trust, which has six underlying road assets and an overall Enterprise Valuation of ₹8,576 crore. These InvIT units are being distributed through a private placement followed by listing, as prescribed under SEBI regulations.

This valuation represents a significant milestone, improving recoveries for creditors of these 6 SpecialPurpose Vehicles (SPVs) road assets including Group Entities – IL&FS, IFIN, ITNL, and Sabarmati Capital One- that had extended loans to these SPVs.

Post this payout, the aggregate debt discharged across IL&FS Group companies will stand at approximately ₹43,000 crore – accounting for over 70 per cent of the estimated total debt resolution target pegged at ₹61,000 crore – and includes the aggregate interim distribution payouts.

The total interim distribution across all Group companies after this distribution will exceed ₹17,000 crore—inclusive of ₹3,500 crore in InvIT units. This cash payout of ₹1,500 crore is in addition to the ₹12,000 crore already distributed to eligible creditors across 12 IL&FS Group entities in multiple phases within the last two years under the approved interim distribution framework.

“This payout marks an important milestone for the Group; it resolves 6 major Road assets through the InvIT route. We are particularly happy that this interim distribution will facilitate payout to creditors including several public funds that are invested at holding company level, thus serving its intended purpose of facilitating timely fund release to eligible creditors, without waiting for the final resolution of IL&FS Group entities. The public interest board is working towards expeditiously resolving the balance assets and is confident of achieving the total aggregate debt resolution target of ₹61,000 crore “, said Nand Kishore, CMD, IL&FS Group.