NCLAT asks IL&FS board for proceeds distribution formula
The National Company Law Appellate Tribunal (NCLAT) on Thursday asked the IL&FS board to come out with a mathematical formula for distribution of proceeds from the resolution of group companies. It said the revised distribution framework proposed by the board on the basis of liquidation value was bound to face opposition among creditors.
In an affidavit to the appellate tribunal on January 9, the IL&FS board had submitted a revised framework for distribution of the financial bid amounts/termination amount and settlement amounts for all set of creditors.
