Committee considers pro-rata debt servicing for IL&FS 'amber' firms

Outstanding loans of the IL&FS group are about Rs 60,000 crore, while its overall debt is over Rs 91,000 crore

Pro-rata debt servicing for ‘amber’ companies of IL&FS is learnt to have been discussed at a recent meeting of a high-level committee. At present, companies of IL&FS under the ‘green’ category are servicing debt. Amber companies are those which were capable  to service debts of only certain senior secured creditors. They can not service debt of other creditors. 

Also, in order to make special purpose vehicles of IL&FS group entities equity positive, favourable interest rates for them is under consideration , sources close to the development said. For this, the IL&FS board is likely to engage with creditors. 

These steps would help