The National Company Law Appellate Tribunal (NCLAT) has asked the crisis-hit infrastructure financing company IL&FS to complete the resolution of 58 firms by March next year, and has extended the moratorium until the date. The two-member bench said that resolution process for 58 entities are at an advanced stage and considerable progress has been made.
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In its reply to a show cause notice in October, IL&FS had said that a debt of Rs 37,700 crore has been resolved as of September 2024 with resolution of 188 entities out of 302 entities, and only 114 entities remaining to be resolved out of which moratorium protection is now only required to be continued for 58 entities.
“The affidavit further indicates that 37% of debt resolution has been completed for the IL&FS Group and final resolution of 188 entities have been achieved and new board expects the overall recovery to be approximately Rs 61,000 crore, that is 61% of the overall debt as of FY25,” said the NCLAT (National Company Law Appellate Tribunal) order.
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The bench has directed IL&FS group to take appropriate steps before the NCLT (National Company Law Tribunal) for closure of the process.
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In August this year, NCLAT has noted that over five years have been elapsed when the “moratorium protection” order was passed. “When the order was passed, it was passed with an intent to protect the IL&FS and its group entities from actions of various creditors to protect the corpus of the IL&FS and its group entities for appropriate resolution. It was never intended that the order shall continue infinitely and there will be prohibition for all time to come against all persons to institute proceedings or suit against IL&FS and its group companies,” the order had said.
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