Earlier this month, the corporate affairs ministry submitted the debt resolution plan for IL&FS.
The entire resolution process would be based on the principles enunciated in the Insolvency and Bankruptcy Code, as per the ministry.
Under the plan, the government has categorised IL&FS group companies into green, amber and red based on their respective financial positions.
Companies under the green category would be those that continue to meet their payment obligations.
Amber category would be for those companies that would not be able to meet their obligations but can meet only operational payment obligations to senior secured financial creditors.
Amber category entities "are permitted to make only payments necessary to maintain and preserve the going concern".
"Companies falling in the red category are the entities which can not meet their payment obligations towards even senior secured financial creditors," as per the plan. Such companies would be permitted to make payment necessary to maintain and preserve the going concern status.