by admin | May 25, 2021 | Corporate, Corporate finance
New Delhi : The National Company Law Appellate Tribunal (NCLAT) on Monday said the cash-strapped Infrastructure Leasing and Financial Services (IL&FS) and its group companies will not be declared as non-performing assets (NPA) without approval from the appellate tribunal.
A two-member bench headed by NCLAT Chairman Justice (Retd.) S.J. Mukhopadhyay was hearing an application moved by some of its lenders.
The order comes after the NCLAT on February 11 said that subsidiaries of IL&FS would be divided into three categories — Green (companies that can meet all debt obligations), Amber (firms that can meet some debt obligations) and Red (companies that can’t meet any debt obligations).
—IANS
by admin | May 25, 2021 | Corporate, Corporate Buzz, News
New Delhi : Bankruptcy appeals court NCLAT on Friday suggested appointing a retired Supreme Court judge to oversee asset sales of debt-stricken Infrastructure Leasing and Financial Services Ltd (IL&FS).
The National Company Law Appellate Tribunal (NCLAT) stayed all arbitration proceedings against the cash-strapped company and ordered IL&FS to submit details of all the arbitral proceedings going on against it and its 348 subsidiaries.
However, arbitration proceedings where IL&FS is getting money will continue, the two-member bench headed by NCLAT Chairperson Justice S.J. Mukhopadhaya said.
The appellate tribunal suggested that all further proceedings of transfer of assets of IL&FS should take place under the supervision of a retired Supreme Court judge.
The group, which had a debt of more than Rs 91,000 crore at the end of March 2018, is trying to sell its companies and their assets as part of its asset monetisation efforts to pay off the dues. Next hearing on the matter will be held on January 28.
On October 1, the Central government superseded the management of IL&FS by appointing a six-member board led by banker Uday Kotak to restore its financial solvency after it defaulted on payment dues triggering liquidity concerns in the NBFC sector.
By November, the firm initiated the asset monetisation process and received over a dozen Expressions of Interest (EoIs) towards acquiring its stake in IL&FS Securities Services Ltd (ISSL) and ISSL Settlement and Transaction Services Ltd (ISTSL).
Later, it initiated the process to sell its renewable energy business, the group’s interests in education (IL&FS Education & Technology Services Ltd) and the ‘Alternative Investment Management’ businesses, along with other subsidiary businesses.
On Wednesday, IL&FS said it received more than 30 EoIs for domestic roads vertical IL&FS Transportation Networks Ltd. It includes its domestic EPC (Engineering, Procurement and Construction) and O&M (operations and maintenance) businesses.
IL&FS Ltd is a core investment company and serves as the holding company of the IL&FS Group, with most business operations domiciled in separate companies which form an ecosystem of expertise across infrastructure, finance and social and environmental services.
—IANS
by admin | May 25, 2021 | Corporate, Corporate finance, Corporate Governance
The bankruptcy of the infrastructure lending giant IL&FS is a result of poor corporate governance by the BJP Govt: Sanjay Nirupam
By Asmita Jadhav,
Mumbai: Mumbai Congress President Sanjay Nirupam today claimed that PM Modi and Finance Minister Arun Jaitley have been pressurizing the state-owned LIC and SBI to bail out the debt ridden Infrastructure Leasing & Financial Services (IL&FS) with the money which belongs to the common people of the country. He has also demanded a high level probe into this matter in order to investigate the role of multiple BJP Ministers who have been taking advantage of their positions and exploiting IL&FS for their vested interests.
Sanjay Nirupam said, “Being a 30-year old infrastructure lending giant, IL&FS has gone completely bankrupt today. How did the debt of this company jump by 44% and its profitability decline by 900% only in the past 3 years? The entire stock market has shaken in the past 2 weeks over this issue. Despite all, PM Modi and Finance Minister Arun Jaitley have been pressurizing LIC & SBI to pay more money and bail out IL&FS. Largest Public sector financial institution LIC owns maximum stakes i.e. 26.34% stakes in IL&FC. It also has almost 29 Crore policy holders and majority of them are common people. The Govt wants the LIC, along with the largest public sector bank SBI, to spend this money which belongs to the common people only to protect the foreign investors. If the Modi Govt doesn’t stop its trend of using the money belonging to the people only to protect its favourites, we will soon witness a situation like that of the Lehman Brother’s Collapse in the year 2008”.
Mr. Nirupam also raised questions as to why no one is questioning the fact that many board members of IL&FS have resigned from their posts. “The RBI had raised a red flag and pre-emoted this crisis a few years ago. Why did the Financial Ministry refrain from taking any precautionary measures? What is the Govt doing to ensure that none of the members who have resigned become another Nirav Modi or Mehul Choksi”, asked Nirupam.
The Mumbai Congress President demanded a high-level probe in this entire issue requesting an investigation to be conducted on the role played by multiple ministers of the BJP Govt in exploiting IL&FS before it went completely bankrupt.
Infrastructure Leasing & Financial Services (IL&FS) has about $500 Million in repayment. However, the firm has only $27 Million available. It has put its corporate headquarters worth Rs. 1300 Crore on sale, it has also identified almost 25 projects for sale. The firm also plans to sell their assets and bring down the debt by almost 30,000 Crore which comprises of only one-third of the total amount. However, this process will take almost a year while the firm has $500 Million in repayment which are due in the second half of this financial year. As of March 2018, LIC owns 25.34% stakes in IL&FS making them the company’s largest stakeholders. It is followed by Japan’s Orix Corporation which has 23.54% stakes in the company. Abu Dhabi Investment Authority, HDFC, Central Bank Of India & SBI hold 12.56% , 9.02%, 7.67% and 6.42% respectively.
