Bad news for creditors as IL&FS, 40 arms move NCLT seeking debt protection

According to corporate law experts, by moving the Mumbai Branch of NCLT, IL&FS is seeking more time to repay its debt

Infrastructure Leasing & Financial Services (IL&FS) and its 40 subsidiaries have filed a petition before the National Company Law Tribunal (NCLT), Mumbai, under Section 230 of the Companies Act, 2013, seeking to restructure their debts. This will delay debt repayments to its lenders.

The Small Industries Development Bank of India (Sidbi), one of IL&FS’ creditors, has moved insolvency court against the company, seeking its money back. IL&FS owes nearly Rs 10 billion to Sidbi.  Sidbi wants to recover Rs 4.5 billion from IL&FS and about Rs 5 billion from its subsidiary IL&FS Financial Services. IL&FS moved the NCLT on Monday, “seeking