No say for lenders in distribution of sale proceeds: IL&FS to NCLAT

CoC's role should be limited to voting on highest bidder, contends firm

The board of Infrastructure Leasing and Financial Services (IL&FS) has submitted a fresh affidavit to the National Company Law Appellate Tribunal (NCLAT), asking the tribunal to direct all financial creditors of the relevant IL&FS group entities, including group lenders, to be part of the committee of creditors. 

IL&FS added the creditors’ committee should only be approached for its vote on the highest bidder of an asset but should have no say in the distribution framework of sale proceeds.

“.. approval of creditors’ committee of the relevant IL&FS group company will not be required for distribution which will be as per the revised