IL&FS case: Kotak-led board to meet on August 21 on speeding up group firm’s resolution process

Published: August 20, 2019 5:57:28 AM

Earlier this month, the board was pulled up by the National Company Law Appellate Tribunal (NCLAT) for slow progress in the resolution of IL&FS group entities.

IL&FS case, Kotak, group firm, resolution process, industry news, Moradabad Bareilly Expressway, Jharkhand Road Projects, West Gujarat Expressway,NCLAT The board has been in talks with lenders to restructure the debt of some of these companies, FE had earlier reported.

By Anwesha Ganguly

The Uday Kotak-led board of IL&FS Group will meet on August 21 to discuss ways to fast-track the resolution process of group entities, sources told FE. The focus will be on those companies categorised by the board as ‘amber’, which are only able to meet their debt obligation to senior, secured lenders.

The board has been in talks with lenders to restructure the debt of some of these companies, FE had earlier reported. In July, the board signed binding term sheets with lenders to restructure the debt of three companies — Moradabad Bareilly Expressway, Jharkhand Road Projects and West Gujarat Expressway.

Read| Brickwork downgrades Essel Group’s NCDs worth Rs 425 crores to ‘BBB-‘

Earlier this month, the board was pulled up by the National Company Law Appellate Tribunal (NCLAT) for slow progress in the resolution of IL&FS group entities. In a progress report filed with the National Company Law Tribunal, the board stated that liquidity issues persist with IL&FS despite the NCLAT having stated that banks may release payments to the group. The report further stated that if the issues persist, they may hamper the resolution process.

At the last meeting, the board formed a three-member committee to look at a report by Grant Thornton on the role of rating agencies in the current state of IL&FS. The meeting on Wednesday may discuss further action on the same, one source aware of the matter said.
In October last year, the former board of IL&FS was replaced by a government-appointed board after the group defaulted on long-term and short-term debt obligations to the tune of Rs 91,000 crore. The board has since overseen the resolution of the group.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.