British Airways, Philips, others want a say in IL&FS resolution plan

The companies said that their provident funds have invested in the bankrupt IL&FS.

Updated: Mar 28, 2019, 11.35 AM IST

Agencies

Philips Employees PF Trust invested in bonds issued by IL&FS and its group entities.

British Airways, Postal Life Insurance and

Philips

India are among the about 100 entities that have sought to be part of the resolution process of

Infrastructure

“Around 100 intervening petitions have been filed in the National Companies Law Appellate Tribunal to allow them to be party in the IL&FS case,” said a person in know of the matter. “These are PF accounts of Philips India, SAS employee provident fund trust, British Airways Cabin Crew Pension Fund, PLC staff fund and superannuation fund.” PF investments are unsecured and these investors want to be part of the resolution process as financial creditors to protect their company’s and their employees’ interests in these companies.

Provident funds of companies are estimated to have invested Rs 15,000-20,000 crore in IL&FS group entities. The government superseded the IL&FS board on October 1 and appointed new members after the company, with a debt of Rs 91,000 crore, defaulted on loan payments. IL&FS has since put its group assets on sale, including energy and road projects, to monetise the investments and repay their creditors.

City and Industrial Development Corporation of Maharashtra, Ambuja Cements, Indian Oil Corp., Titan, Power Grid and Indian Postal Life Insurance are among those which want to be part of the resolution process as financial creditors. The petitions were filed over the past two months.

Philips Employees PF Trust invested in bonds issued by IL&FS and its group entities.

“Considering the above, Philips Employees PF Trust has also filed an interlocutory application before the Hon’ble Tribunal against IL&FS and its group entities as an intervener to safeguard its rights and interests,” the spokesperson said. The next hearing is on March 29.

An IL&FS spokesperson declined to comment on the matter.

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Author: Prakash Poojary

Business Analyst

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