The National Company Law Appellate Tribunal (NCLAT) has directed the board’s new members for the debt-ridden IL&FS Group to distribute Rs 16,361 crore of cash and InvIT units available across the Group to its creditors on a pro-rata basis.
The interim dividends will be awarded Rs 16,361 crore, which includes Rs 11,296 crore in the case and in-kind of InvIT units (Infrastructure Investment Trusts) with maximum stakes distributed to the creditor of large group firms such as IL&FS, IFIN and ITNL.
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“The interim distribution shall be confined only to the entities as reflected in Annexure-6 except those excluded and for Rs 16,361 crores, i.e. Rs 11,296 crore of cash and Rs 5,065 crores of InvIT Units,” said order by a two-member NCLAT bench headed by Chairperson Justice Ashok Bhushan.
Concerning interim distribution, NCLAT said it “shall be implemented only after approval by the new board” and “shall take place on a pro-rata basis”.
Also, the Appellate Tribunal has directed IL&FS to complete the resolution process by the end of this month and list the matter on July 19, 2022, for the next hearing.
“We view that IL&FS and its entities may take all steps to complete the resolution process as per the resolution framework and submit their Application for approval before the NCLT by 30.06.2022,” NCLAT said in an order dated May 31, 2022.
