New Delhi, Feb 11 (IANS) The National Company Law Appellate Tribunal (NCLAT) on Monday lifted the debt-repayment moratorium imposed on all 133 off-shore entities and some 22 domestic firms belonging to the Infrastructure Leasing and Financial Services (IL&FS) Group.
Earlier, the NCLAT had imposed a 90 day moratorium on loan recovery from the subsidiaries of the debt ridden group.
The Group with a consolidated long-term debt of around Rs 91,000 crore has 133 entities which have been incorporated or located outside the country's jurisdiction including IL&FS Africa Infrastructure Development Company, IL&FS Global Finance Services (UK) Limited and IIML Fund Managers (Singapore) PTE Ltd.
Accordingly, some of these companies would either have to service their obligation as per agreed terms with lenders. However, many of these entities are said to be deep in the red and these could face liquidation.
In addition to the foreign entities, 22 firms out of the 169 subsidiaries which have been incorporated in India have also been taken out of the moratorium.
Further, NCLAT has appointed former Supreme Court Judge Justice D.K. Jain to supervise the 'Resolution Process' of the IL&FS Group and its subsidiaries.
At present, only 22 group firms have been categorised under the green category. The companies under this category include IL&FS Investment Managers, IL&FS Securities Services and IL&FS Paradip Refinery Water amongst others.
Subsequently, a classification of entities into "Green", "Amber" and "Red" has been done by the resolution consultant appointed by the new Board based on the 12-month cash flow based solvency test.
Till now out of 169 companies of the group that have been incorporated in India, only 69 have been classified into the three categories.
As per the classification norms, "Green" entities are those companies which can service their debt obligations, while firm in "Amber" group can partly meet their obligations and "Red" are those which can not make any payment obligations
Last year, the Central government superseded the management of the beleaguered company via a NCLT order and appointed a six-member board led by Uday Kotak, MD & CEO of Kotak Mahindra Bank, to restore its financial solvency.
Key public sector lenders and undertakings such as LIC and SBI have a 25.34 per cent and 6.42 per cent stake, respectively, in the firm which has around Rs 91,000 crore in long-term debt. The credit crunch has led a few of the company's subsidiaries to default in servicing some of the inter-corporate deposits.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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