Resolving IL&FS crisis: Single solution for entire group debt not possible, Uday-Kotak led board tells NCLT


Resolving IL&FS crisis: Single solution for entire group debt not possible, Uday-Kotak led board tells NCLT

The billionaire banker Uday Kotak-led board of Infrastructure Leasing and Financial Services (IL&FS) has informed the National Company Law Tribunal (NCLT) that it is planning to focus on vertical as well as asset-level resolution as finding a solution for the group’s crisis and debt of about Rs 91,000 crore is not possible.

The group-level resolution would involve significant capital infusion from credible as well as financially strong investors, which is not feasible right now, the board said its latest status report to the NCLT. “Based on an outreach conducted by the FTA, the initial assessment seems to indicate that currently, the group-level resolution option is unlikely to materialise,” it noted in the report.

Now, the board is left with hiving off the business and selling entire business verticals to willing buyers. In case it does not fructifies, it will take the route of asset-level resolution, which would include asset-by-asset solution via various methods such as significant capital infusion or asset monetisation to cut debt. Read More

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