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Govt to move NCLT to remove IL&FS management following serial defaults

IL&FS has Rs 910 billion of debt and is unable to repay loans in the last one month

Dev Chatterjee & PTI  |  Mumbai 


Union government has decided to remove the management of following serial defaults by the company and its subsidiaries to lenders.

has Rs 910 billion of debt and is unable to repay loans in the last one month.

has also moved the NCLT Mumbai seeking to restructure its debt under Section 230 of the Act 2013. IL&FS shareholders led by LIC has decided to chip in Rs 45 billion via its rights issue, which is expected to close by October end.

A source said the government is looking to appoint a new management, which would turn around the company.

The Modi government had come under heavy criticism from the Opposition led by Congress for failing to contain

Sources close to IL&FS said it is likely to support the application as it will help resolve all the pending issues and reach at a comprehensive solution for the benefit of all stakeholders.

The key shareholders of IL&FS include LIC, SBI and Central Bank of India.

IL&FS, where LIC is the largest shareholder with 25.34 per cent stake, has a debt burden of over Rs 900 billion.

ALSO READ: IL&FS to get $2.1 bn lifeline, Alvarez & Marsal to come up with revamp plan

First Published: Mon, October 01 2018. 11:00 IST