All but two among 13 'amber' companies, with a cumulative debt of Rs 16,372 crore, in the IL&FS group are in advanced stages of resolution, the government informed the National Company Law Appellate Tribunal (NCLAT) on Thursday. Term sheets have been signed with the lenders of three 'amber' companies - Jharkhand Road Project Implementation, West Gujarat Expressway and Moradabad-Bareily Expressway - which have now been converted into 'green' companies or those able to meet all their payment obligations. 'Amber' companies are those that are able to partially pay off their loans.
The NCLAT had on August 8 asked the government to submit status report for the amber companies. ITNL Road Infrastructure Development Company (IRIDCL) has also entered into settlement agreement with the concessioning authority. IRIDCL will receive Rs 144 crore, which on receipt will be used to settle the liabilities to creditors.
Of the remaining nine 'amber' companies, binding bids have been received for seven companies in which lenders may have to take between 10-42% haircuts, senior advocate Ramji Srinivasan, appearing on behalf of IL&FS and Union of India, on Friday submitted to the NCLAT. The report was submitted on September 4 in an affidavit.
As no bids were received for Thiruvananthapuram Road Development Company, the government is evaluating an alternate resolution mechanism. The East Hyderabad Expressway has also received no bids. In one case, IL&FS Education & Technology Services (IETS) lenders are not likely to take any haircut.
Lenders will take the least 10% haircut for Chennai Nashri Tunnelway, for which a binding bid was received on August 30. Upon completion of the bid evaluation process, lenders may consider the proposal provided by the highest bidder at the creditors' committee, to be constituted in accordance with the resolution framework report, the government said in the status report.
They will take 42% haircut for Jorabat Shillong Expressway, for which also a binding bid was received on August 30. Binding bids have been received for Hazaribagh-Ranchi Expressway, IL&FS Cluster Development Initiative and IL&FS Skills Development Corporation, the government said in the affidavit.
Lenders are likely to take a 22% hit of their exposure in IL&FS Tamil Nadu Power Company (ITPCL), it said, adding that pursuant to the meeting with the lenders of ITPCL and ministry of corporate affairs on September 2, the lenders and ITPCL have agreed to reconsider a revised restructuring proposal.
As directed by the NCLAT, the government has also submitted status report with regard to 82 'red' companies, but the NCLAT will take a stock on them on the next hearing scheduled on November 18.
Of the 302 IL&FS group companies, 133 were incorporated outside India and as such are outside the territorial jurisdiction. The remaining 169 companies, incorporated domestically, have been divided into three categories - on the basis of their debt servicing ability.