MUMBAI: The board of Infrastructure Leasing & Financial Services will form committees of creditors at asset levels — the special purpose vehicles (SPVs) managing its projects — to assess their outstanding payments. It is also looking to appoint a claim adviser at the group level to coordinate the activity, people familiar with the matter said.
The National Company Law Tribunal last week allowed 22 SPVs under IL&FS to pay their dues. These SPVs are in the green category, according to a classification by the IL&FS, as they are operating with a positive net worth and cash flow to meet obligations to all creditors for one year. Remaining SPVs are marked amber or red, depending on their financial condition.
The board in its progress report has talked about asset-level resolution and in some cases, a sale of business vertical comprising a basket of companies or other entities.
Under this, each member of the creditors’ committee for an asset or a basket of SPVs would get voting rights based on the value of the financial debt owed by that business. A debt resolution proposal would need the approval of two thirds of the committee to pass.
It also proposed to appoint a resolution consultant who will undertake the process of collection and verification of claims of a sale company. The consultant will verify the claims by each creditor of the sale company and prepare a list.
The financial, operational and statutory claims and liabilities as of September 30, 2018 would be settled, the board had said. The cutoff date has been set for September 30 because the new board was appointed on October 1.
Source- Economic Times.