There is a need to have a meaningful resolution that adds value to shareholders, IL&FS board said.
IL&FS board maintains a reasonable approach to the resolution process and promises that no creditor will be compromised. There is a need to have a meaningful resolution that adds value to shareholders, it added. Presenting a status report card of where debt-ridden company stands currently, the new board constituted six months back said that the balance sheet of the company looks strong on a standalone basis.
Even as recovery ability of the loans is posing challenges, the company would take care of creditors by resolving assets within India, the board added.
Speaking on the occasion, Uday Kotak, IL&FS Chairman, said that a solid team is managing the entire resolution process of IL&FS. In addition to whole time board members, an operating committee has also been created, he added. Earlier in the day, the company board members held a meeting.
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Kotak further informed that Vineet Nayyar has been appointed as Executive Vice Chairman & MD, while CS Rajan has been appointed MD of IL&FS effective today.
The board also said that 150 intervention applications have been filed against IL&FS at NCLAT. The total outstanding loan stands at Rs 99,354 crore currently, the board also informed.
Meanwhile, making the first arrest in its probe into alleged irregularities that led to a default crisis at IL&FS, the Serious Fraud Investigation Office (SFIO) Monday arrested Hari Sankaran, the former chairman and managing director of IL&FS.
The SFIO arrested Sankaran under Section 447 of the Companies Act, 2013 which deals with punishment for fraud. A person booked under this section can face a jail term ranging from six months up to ten years, and a monetary penalty.