Eye on value, govt seeks to ‘fast-track’ IL&FS resolution
While the new board of scam-hit Infrastructure Leasing & Financial Services (IL&FS) has made significant progress in the resolution of Rs 99,000 crore plus debt of the company, the government is pushing for a faster resolution to protect value and creditors interests.
IL&FS has already addressed Rs 43,600 crore of debt as of May 2021 and indicated that Rs 50,000 crore of estimated recovery is likely to be addressed by September 2021.
“There is a need fast track the resolution process to protect value. The board has adopted the asset-by-asset resolution framework, and a basket-approach in some cases, to derive most of the economic value in the entities,” a senior government official said.
