Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: 5.0
Article rating: 3.3
Article rating: 5.0
RSS

News

IL&FS board appoints 3 advisors to develop resolution plan

Author: PTI/Monday, October 22, 2018/Categories: Corporate

IL&FS board appoints 3 advisors to develop resolution plan

Mumbai, Oct 22 - The newly constituted board of Infrastructure Leasing and Financial Services (IL&FS) on Monday said it has appointed three advisors to formulate and execute a resolution plan for the debt-ridden company.

Arpwood Capital and JM Financial have been appointed as the financial and transaction advisors (FTAs), while Alvarez and Marsal (A&M) as the restructuring advisor to the company's board, according to a release.

The FTAs, along with other advisors, would be advising the new board on solutions towards resolution for IL&FS. The two agencies would also undertake valuations across divestment and monetisation, it said.

A&M, as restructuring advisor, would assist the board in maintaining strict controls on and managing liquidity on a day-to-day basis at all levels in the group, it added.

It would also evolve a resolution plan and management of stakeholders with regards to the resolution at the time of implementation, the release said.

It can be noted that the previous board had also appointed Alvarez and Marshal to formulate a turnaround strategy.

"At a meeting of the board of directors of IL&FS held last week, the board has considered it important to harmonise all asset monetisation activities, including ongoing initiatives and to undertake the same in a transparent and speedy manner aligned with the broader objective of optimising the interest of different stakeholders," the company said in the release.

IL&FS and its subsidiaries have defaulted on several debt repayments recently due to liquidity crisis. It needs an immediate capital infusion of Rs 3,000 crore and is also planning a Rs 4,500-crore rights issue.

The company as of March 2018 owed over Rs 91,000 crore to banks and other creditors.

On October 1, the government superseded the board of IL&FS and appointed a new board, with banker Uday Kotak as its executive chairman.

Besides Kotak, other members of the new board are former Sebi chairman GN Bajpai, ICICI Bank non-executive chairman GC Chaturvedi, IAS officer and the director general of shipping Malini Shankar and Vineet Nayyar, veteran auditor Nandkishore and CS Rajan, former chief secretary of Rajasthan.

In its second meeting held on October 12, the new board appointed nominee directors for eight of IL&FS subsidiaries. It also announced several austerity measures related to personnel and operating expenses.

After the first board meeting on October 4, Kotak had hinted that the crisis at the infra lending and engineering conglomerate was much more complex than earlier thought as the number of its subsidiaries and associates have more than doubled to 348.

He had also said that the resolution will take some time and the board's focus is to preserve the fair value of the assets and the enterprise to the maximum extent.

The board after it's first meeting had said it is required to give a roadmap for the company to NCLT by October 31.

Print Rate this article:
No rating

Number of views (133)/Comments (0)

rajyashree guha

PTI

Other posts by PTI
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free