Corporate Affairs Secretary Injeti Srinivas said that Rs 12,000 crore-loan exposure of almost 55 green companies of crisis-hit IL&FS group is likely to be settled by July end as he asserted that the resolution process is on track. Besides, many of the green companies have positive equity which means that after settling debt obligations, shareholders would “get something in return for their equity stake”, Corporate Affairs Secretary Injeti Srinivas said.
The board of diversified IL&FS group, which is estimated to have a debt burden of over Rs 94,000 crore, was superseded by the corporate affairs ministry in October last year. Since then, the National Company Law Tribunal (NCLT)-appointed board is managing the affairs to ensure orderly settlement. As part of the resolution efforts, the group companies have been classified into three categories, mainly based on their financial positions — green, amber and red.
There are almost 55 companies in the green category and they have a loan exposure of about Rs 12,000 crore. Ten out of the 55 companies account for nearly 90 pc of the loan exposure, he noted. “In the green category, the major focus is on settling dues with respect to those ten large companies. If the dues of the ten companies can be settled, then 90 pc of the Rs 12,000 crore can be settled… By July end, we will be aspiring to settle the debt of green companies, which is around Rs 12,000 crore,” he said.
Meanwhile, IL&FS Securities Services (ISS) moved the Securities Appellate Tribunal (SAT) to direct markets regulator Sebi to annul certain transactions carried out by Allied Financial Services. In February, Sebi had barred Allied Financial and others for misappropriating client securities and a host of other violations.