IL&FS Group companies have commenced an interim distribution of Rs 50 billion, comprising Rs 35 billion worth of Infrastructure Investment Trust (InvIT) units and Rs 15 billion in cash, to eligible creditors as part of their ongoing debt resolution efforts. The interim payout is primarily being initiated by three key holding companies – Infrastructure Leasing and Financial Services (IL&FS) Limited, IL&FS Financial Services Limited (IFIN), and IL&FS Transportation Networks Limited (ITNL). Together, these entities hold the bulk of the Group’s debt and accommodate major creditors and public funds. The InvIT units are being issued by the Roadstar Infra Investment Trust, which has six core road assets: MBEL, SBHL, PSRDCL, BAEL, TRDCL, and HREL, with an overall enterprise valuation of Rs 8,576 crore. These units are being distributed through a private placement and will be subsequently listed, as per SEBI regulations. This valuation represents a key milestone, enhancing recovery potential for creditors of these six Special Purpose Vehicles (SPVs), which include IL&FS Limited, IFIN, ITNL, and Sabarmati Capital One Ltd (SCOL), entities that had extended loans to the SPVs. Following this distribution, the total debt discharged across all IL&FS Group companies will rise to approximately Rs 430 billion, accounting for over 70 per cent of the total debt resolution target set at Rs 61,000 crore. This figure includes the interim payouts already made. The total interim distribution across all Group companies, including the InvIT units, will exceed Rs 170 billion. This follows a prior Rs 120 billion already distributed across 12 IL&FS entities in multiple phases within the past two years, under the approved interim distribution framework. This distribution marks a significant milestone for the Group, resolving six major road assets via the InvIT route. We are particularly pleased that this distribution will benefit creditors, including numerous public funds, invested at the holding company level. This initiative facilitates the timely release of funds to eligible creditors, without waiting for the final resolution of IL&FS Group entities. The public interest board is committed to quickly resolving the remaining assets and is confident in reaching the total debt resolution target of Rs 61,000 crore, said Nand Kishore, Chairman and Managing Director of IL&FS Group. The Boards of these companies have set February 17, 2025, as the record date for the allocation of InvIT units and cash. The IL&FS Board had selected the InvIT route in 2019 after individual road asset monetisation attempts faced weak responses. The InvIT model provided a more favourable valuation for creditors. Following the necessary approvals, the Roadstar Infra Investment Trust was formed, with Roadstar Investment Managers Limited appointed as the investment manager, and Elsamex Maintenance Services Limited designated as the project manager. Subsequently, six road assets were transferred to the InvIT. The InvIT units linked to these road assets were allocated to IL&FS, IFIN, ITNL, and SCOL in accordance with their debt exposure to the assets. These companies are now distributing the units and accumulated cash to their creditors in line with the IL&FS resolution framework. Banks and institutions set to receive units and/or cash as part of this distribution include Bank of Baroda, Canara Bank, SBI, ICICI Bank, DBS, LIC MF, and IndusInd Bank. Additionally, a wide array of public funds will benefit from the distribution, including the Post Office Life Insurance Fund, NPS Trust, LIC P&G Fund, State Bank of India Employee Provident & Pension Funds, Infosys EPF Trust, Army Group Insurance Fund, DAV College Trust (EPF), Coal Mines Provident Fund, National Insurance Provident and Pension Funds, and NTPC Provident and Pension Funds. The National Company Law Appellate Tribunal (NCLAT) approved the interim distribution framework in May 2022, following a recommendation from the new IL&FS Board. This framework aims to release funds promptly and discharge debts to creditors, particularly public funds, pending the final resolution of specific IL&FS Group entities.