About half the assets of debt-laden infrastructure financier IL&FS have been put up for sale, a top government official said on Tuesday, pointing also to measures that would be taken to prevent frivolous bidding for local companies being sold through bankruptcy administration.
Corporate affairs secretary Injeti Srinivas told the media Tuesday on the sidelines of a conference on bankruptcy that of the 100-odd IL&FS group companies that have not yet been grouped into green, amber or red brackets based on their solvency profiles, most would fall in the red category, with a few entities grouped under the amber bracket. “It is very unlikely that in the remaining 100, you will have a green company springing up. Essentially, the bulk of the companies are in red — that is they are not solvent and they are not able to repay their debt,” said Srinivas.