News for IL&FS Transportation Networks Ltd (IL&FSTRANS.NS)

The debt-laden IL&FS Group has begun distributing Rs 5,000 crore to its eligible creditors as part of its ongoing restructuring. This interim distribution comprises Rs 3,500 crore in Infrastructure Investment Trust (InvIT) units and Rs 1,500 crore in cash, the company said in a exchange filing on Monday.

IL&FS Group initiates ₹5,000 crore interim distribution to creditors, including ₹3,500 crore in InvIT units, improving debt recovery.

The Nifty IT index was trading 0.1 per cent at 40461.05.

The Supreme Court has upheld the National Company Law Appellate Tribunal's order allowing interim distribution of funds from the escrow account of Baleshwar Kharagpur Expressway Ltd., an IL&FS subsidiary. The court rejected IL&FS's appeal, which argued that the order violated the principle of equitable distribution to all creditors.

IL&FS has appealed to the Supreme Court against NCLAT's order allowing interim distribution of Rs 263.44 crore from BKEL's escrow account to lenders. IL&FS argues this breaches the equitable distribution framework intended for resolving its debt-laden group entities, potentially impacting its resolution process.

The National Company Law Appellate Tribunal (NCLAT) has ordered an interim payment of 75 per cent of the total amount deposited in an escrow account to lenders of Baleshwar Kharagpur Expressway Limited (BKEL), promoted by IL&FS Transportation Networks Ltd (ITNL).

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The Nifty Auto index was trading 0.27 per cent down at 24869.65.

IL&FS Transportation Networks Ltd secured approval to issue units of the Roadstar Infra Investment Trust, aiming to list by December. Road assets with an enterprise value of Rs 8,000 to Rs 8,500 crore will be part of the trust. Units will be allocated to Roadstar Infra Private Ltd and IL&FS creditors, offering returns from toll collections and annuities.

The Nifty Realty index was trading 0.59 per cent down at 1067.9.

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Awfis Space Solution, Just Dial, Umang Dairies, MTNL and Ratnaveer Precision, hit their fresh 52-week highs at 10:14AM.

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Except metal, all other sectoral indices ended in the red. Also, both BSE midcap and smallcap indices shed over a percent.

The lender said IL&FS Transportation had availed credit from it during 2016 under multiple banking arrangements in which Karnataka Bank was one of the members.

Loan given to IL&FS Transportation

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