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IL&FS board is moving towards clearing dues

PW Bureau 

It has set up panels of creditors at asset levels, a host of group entities managing its projects, to look into its outstanding dues Mumbai: The Infrastructure Leasing and Financial Services (IL&FS) board will set up panels of creditors at asset levels, a host of group entities managing its projects, to look into its outstanding dues, a source said. To coordinate the activity, IL&FS is also considering roping in a claim adviser at the group level. Last week, the National Company Law Tribunal permitted 22 special purpose vehicles (SPVs) under IL&FS to make their payments. The SPVs are in the green category since they are being run with a positive net worth and cash flow to meet obligations to all creditors for a year, says a classification by the IL&FS. Depending on the financial state of the SPV, the remaining is marked amber or red. In its progress report, the IL&FS board has touched on asset-level resolution and in some instances, the sale of business vertical, including a basket of companies or other entities.

Debt resolution proposal needs 2/3rd-panel approval

Based on the value of the financial debt owed by that business, each member of the panels of creditors for an asset or a basket of SPVs would obtain voting rights. A proposal for debt resolution would require the approval of two-thirds of the panel to pass.  The board also considered the appointment of a resolution consultant to take on the collection and verification process of claims of a sale company. The consultant would prepare a list after verifying the claims by each creditor of the sale company. The financial, operational and statutory claims and liabilities as of September 30 would be settled, the board had said. Since the new board was appointed on October 1, the cut-off date has been set for September 30.