Lenders led by Canara Bank have received close to ₹1,300 crore as part of their dues from Infrastructure Leasing & Financial Services (IL&FS) in what is a second payout from the defunct infrastructure financier.
The amount was distributed to secured creditors late last month as a settlement for their dues from Rapid MetroRail Gurgaon South (RMGSL), three people familiar with the process said.
Secured creditors received a total of about ₹1,300 crore for their dues totalling ₹1,500 crore, a recovery of 87%.
Canara Bank, Union Bank of India, Central Bank of India, Punjab & Sind Bank and IIFC are the five secured creditors that received the funds.
An IL&FS spokesperson confirmed that with the latest distribution to lenders, IL&FS has returned over ₹1,900 crore representing more than 80% recovery for secured financial creditors, in Rapid MetroRail Gurgaon (RMGL) and RMGSL.
"The money was distributed on December 31 and is the second settlement for banks from IL&FS. A couple of months ago dues from RMGSL's twin company Rapid MetroRail Gurgaon (RMGL) were also cleared. These two accounts are now the first among the long-awaited settlement from banks from IL&FS," said one of the persons cited above.
In November, IL&FS distributed ₹623.38 crore to the secured creditors of RMGL comprising Union Bank of India, Bank of India, Indian Bank, Punjab & Sind Bank, UCO Bank, Bank of Baroda, Punjab National Bank and Indian Overseas Bank. The total claims of these lenders were ₹715 crore, translating into a recovery of 83%.
With the distribution of dues from RMGSL secured creditors to the Gurgaon Rapid Metro have recovered 87% of their receivables from the company.
The IL&FS board was appointed by the government after the spectacular collapse of the company in September 2018. The company now has around ₹16,360 crore - including ₹11,295-crore cash and ₹5,065-crore InvIT units - available for distribution to creditors across the IL&FS Group.
Banks are relieved that finally, the distribution of monies is happening which will allow them to get some provision write-backs in the third quarter.
The IL&FS board has maintained a resolution target at ₹61,000 crore or 61% of the nearly ₹1 lakh crore outstanding loans.
The amount was distributed to secured creditors late last month as a settlement for their dues from Rapid MetroRail Gurgaon South (RMGSL), three people familiar with the process said.
Secured creditors received a total of about ₹1,300 crore for their dues totalling ₹1,500 crore, a recovery of 87%.
Canara Bank, Union Bank of India, Central Bank of India, Punjab & Sind Bank and IIFC are the five secured creditors that received the funds.
An IL&FS spokesperson confirmed that with the latest distribution to lenders, IL&FS has returned over ₹1,900 crore representing more than 80% recovery for secured financial creditors, in Rapid MetroRail Gurgaon (RMGL) and RMGSL.
"The money was distributed on December 31 and is the second settlement for banks from IL&FS. A couple of months ago dues from RMGSL's twin company Rapid MetroRail Gurgaon (RMGL) were also cleared. These two accounts are now the first among the long-awaited settlement from banks from IL&FS," said one of the persons cited above.
In November, IL&FS distributed ₹623.38 crore to the secured creditors of RMGL comprising Union Bank of India, Bank of India, Indian Bank, Punjab & Sind Bank, UCO Bank, Bank of Baroda, Punjab National Bank and Indian Overseas Bank. The total claims of these lenders were ₹715 crore, translating into a recovery of 83%.
With the distribution of dues from RMGSL secured creditors to the Gurgaon Rapid Metro have recovered 87% of their receivables from the company.
The IL&FS board was appointed by the government after the spectacular collapse of the company in September 2018. The company now has around ₹16,360 crore - including ₹11,295-crore cash and ₹5,065-crore InvIT units - available for distribution to creditors across the IL&FS Group.
Banks are relieved that finally, the distribution of monies is happening which will allow them to get some provision write-backs in the third quarter.
The IL&FS board has maintained a resolution target at ₹61,000 crore or 61% of the nearly ₹1 lakh crore outstanding loans.
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