Infrastructure Leasing & Financial Services (IL&FS) has made significant progress in addressing its long-standing financial crisis, reporting cumulative debt resolution of ₹48,463 crore as of September 2025. The development marks a major step toward meeting its total resolution goal of ₹61,000 crore, as outlined during its restructuring phase after the 2018 collapse.
Debt Resolution Progress Detailed in Tribunal Filing
In a status update submitted to the National Company Law Appellate Tribunal (NCLAT), IL&FS confirmed that it has now achieved nearly 80% of its targeted settlement plan. The latest figure reflects an improvement from March 2025, when debt resolution stood at ₹45,281 crore, marking a 7% increase in just six months.
At the time the crisis surfaced in 2018, the group’s total liabilities were recorded at ₹99,355 crore, making it one of India’s most challenging corporate insolvencies.
Asset Monetisation and Cash Flows Drive Repayments
Much of the progress has come from strategic asset monetisation and restructuring measures. Of the total settlement:
- ₹25,893 crore was realized through asset disposals, project terminations, and transfers to InvITs
- ₹7,545 crore was resolved via operations of profitable group entities, auto recovery mechanisms, and release of financial guarantees
- ₹16,898 crore was distributed through interim internal cash flows, with ₹15,026 crore going directly to external lenders
The multi-layered repayment strategy has been central to stabilising the group’s financial position.
Cash Available for Future Distribution
IL&FS currently holds a cash reserve of ₹8,575 crore, which includes:
- ₹406 crore earmarked for pending or final payments
- ₹3,735 crore designated for operating expenses, ongoing claims, and contingencies
- ₹4,108 crore maintained by subsidiaries still undergoing resolution
Additionally, the group retains InvIT units valued at ₹326 crore, received as part of earlier asset transfers.
Progress on Subsidiary Resolutions Continues
Since the restructuring began, IL&FS has completed the resolution of 202 group entities—including 76 domestic and 126 offshore units. Clearance remains pending for 36 domestic entities, while regulatory or judicial filings are due for 62 others.
A key milestone in the ongoing process was the sale of Chenani Nashri Tunnelway Limited to Cube Highways, one of the largest deals under the restructuring programme.
Summary
IL&FS has now resolved ₹48,463 crore of debt—nearly 80% of its planned ₹61,000 crore repayment objective—through asset sales, internal cash flows, and restructuring mechanisms. With cash reserves and ongoing subsidiary resolutions in progress, the group continues to advance one of India’s most complex corporate recoveries following its 2018 financial collapse.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.