ITNL Starts Third Interim Payment to Debenture Holders

IL&FS Transportation Networks Ltd (ITNL) has announced its third interim distribution to Non-Convertible Debenture (NCD) holders. The payment totals ₹35,64,45,235 for Series III (ISIN INE975G08041) and ₹7,35,33,189 for Series SR-II (ISIN INE975G08033).

Key Details of the Payout

ITNL is proceeding with its third interim distribution to Non-Convertible Debenture (NCD) holders, with payouts beginning April 16, 2026. The distribution is set for eligible holders as of the record date, April 10, 2026. This step is taken in compliance with orders from the National Company Law Appellate Tribunal (NCLAT), which is overseeing the IL&FS group's resolution. Alvarez & Marsal India Private Limited, Grant Thornton Bharat LLP, and Resolution Consultants are managing this distribution process.

Significance for Investors and Creditors

This interim payout shows ongoing progress in the IL&FS group's resolution process. For NCD holders, it’s a concrete step towards recovering invested capital. The distribution reduces the admitted claim value for these NCDs, reflecting funds being returned to creditors.

Background: The IL&FS Crisis and Resolution

ITNL, a major player in India's road infrastructure, was a key subsidiary of the IL&FS group. The group faced a severe financial crisis in September 2018 after defaulting on its debt. This led to a government takeover and the appointment of a new board to manage its resolution. Consultants, including Alvarez & Marsal and Grant Thornton Bharat LLP (as Claims Management Advisor), have been instrumental in restructuring and managing the resolution plan and creditor claims. The NCLAT has guided these interim distributions to creditors.

Ongoing Risks and Past Concerns

ITNL faces outstanding tax liabilities. As of December 30, 2025, a demand notice from the CGST Act cited ₹1,77,07,511 for GST, interest, and penalties. Separately, a notice under the Finance Act indicated ₹96,96,046 for Service Tax and penalties as of December 31, 2025. Past governance issues are also noted, with SEBI having previously penalized ITNL and individuals for violations of norms and accounting standards.

Comparison with Infrastructure Peers

Unlike peers such as Larsen & Toubro, IRB Infrastructure Developers, and PNC Infratech, which are focused on new projects and operations, ITNL's primary activity is its debt resolution process. While competitors pursue growth, ITNL is focused on asset monetization and distributing funds to creditors under regulatory guidance.

Payout Details by Series

Details on payments and their percentage of admitted claim value for specific NCD series include:

• Series XV (ISIN INE975G08017): ₹10,45,539 (₹0.01 crore), representing 7% of its admitted claim.
• Series SR-II (ISIN INE975G08033): ₹7,35,33,189 (₹73.53 crore), representing 35% of its admitted claim.
• Series III (ISIN INE975G08041): ₹35,64,45,235 (₹356.45 crore), representing 36% of its admitted claim.

What to Watch For

Investors will track the successful completion of this third interim payout. Further updates on the broader IL&FS group debt resolution progress and timeline are anticipated. Any announcements regarding future distributions, as well as ITNL's management of its outstanding tax liabilities, will be important to monitor.