An earlier plea moved by the beleaguered Infrastructure Leasing and Financial Services (IL&FS) for restructuring under the Companies Act will be withdrawn in the coming days.<\/p>\n
On Wednesday, the National Company Law Tribunal (NCLT) in Mumbai granted permission to IL&FS to withdraw its petition moved under Section 230 of the Companies Act on September 25. <\/p>\n
Section 230 of the Companies Act is a mechanism that companies can use to restructure their balance sheets through direct talks with their creditors.<\/p>\n
The NCLT directed IL&FS’ legal representative, Cyril Amarchand Mangaldas, to file a fresh petition for withdrawal of the original petition.<\/p>\n
After the infrastructure-financier defaulted on inter-corporate loans and other liabilities, the previous board had moved the NCLT seeking the tribunal’s direction to insulate itself from Insolvency and Bankruptcy Code proceedings.<\/p>\n
But given the systemic importance of the non-banking financial institution, the Ministry of Corporate Affairs (MCA) and the government took over the company on October 01.<\/p>\n
As a consequence, the old board was dissolved and a new board of government nominees was appointed by the NCLT under sections 235 and 236 of the Companies Act.<\/p>\n
The tribunal asked the new board to prepare a roadmap for turning around the company by October 31.<\/p>\n
Total borrowings of the company as of September end stood at Rs 910 billion.<\/p>\n
Later on Wednesday, the NCLT will hear the MCAs petition.<\/p>\n
According to reports, the new board of directors of IL&FS, along with the government, will present a plan that may either suggest its sale, as a whole or through its subsidiaries separately, or a liquidation and asset monetisation strategy.<\/p>\n
Further, the government may offer to inject liquidity to curb any further defaults.<\/p>\n
IL&FS requires Rs 350 billion in liqudiity support as it has over Rs 400 billion worth of debt obligations due.<\/p>\n","protected":false},"excerpt":{"rendered":"
An earlier plea moved by the beleaguered Infrastructure Leasing and Financial Services (IL&FS) for restructuring under the Companies Act will be withdrawn in the coming days. On Wednesday, the National Company Law Tribunal (NCLT) in Mumbai granted permission to IL&FS to withdraw its petition moved under Section 230 of the Companies Act on September 25. Section 230 of the Companies Act is a mechanism that companies can use to restructure their balance sheets through direct talks with their creditors. The NCLT directed IL&FS’ legal representative, Cyril Amarchand Mangaldas, to file a fresh petition for withdrawal of the original petition. After […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[230],"tags":[],"class_list":["post-187881","post","type-post","status-publish","format-standard","hentry","category-roads"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/187881","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=187881"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/187881\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=187881"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=187881"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=187881"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}