The new board of IL&FS, chaired by top banker Uday Kotak, on Thursday sought to calm down the market fears by saying that they “broadly” have a sense of what to do to revive the crisis-hit infrastructure financing company, while admitting that this case is far more complex than the “simple felony” case of Satyam.
The board has appointed Vineet Nayyar as the Vice Chairman and the Managing Director of IL&FS. Notably, Vineet Nayyar also headed Satyam as its Chairman after Tech Mahindra took over the beleaguered IT company in the aftermath of a major fraud.
Speaking with reporters, Vineet Nayyar said that issues at the infrastructure financing company are challenging and will take time, but are not impossible to fix. He also said that the crisis at IL&FS is much more complex than the “simple felony” case of Satyam.
The government superceded IL&FS board after the several defaults by the company came to light. Il&FS is the only second company to witness an intervention like this from the government after the infamous Satyam case.
Speaking on the comparison between Satyam and IL&FS, Uday Kotak also said that IL&FS is much more complex and bigger than Satyam and thus the comparison is not fair. The board will try to find a fair resolution mechanism consistent with the law and the National Company Law Tribunal (NCLT), he added.
“We have a sense of broadly what directions and options we need to go forward in. We obviously understand that valuations may be different, but we have a sense of the various alternatives which we can explore,” Uday Kotak said at the press conference after the board’s first meeting.
“For us to be able to assess, to have a view on the whole maze of the 348 entities — this is more than double of the earlier assessment of a number of entities — in all fairness, it will take us a long time. We are evaluating various options to ensure that the fair value of the assets and the enterprise is preserved to the maximum extent we can do, and obviously find a fair resolution mechanism,” the top banker said.