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The Infrastructure Leasing and Financial Services Ltd newly constituted board have appointed three advisors to formulate and execute a resolution plan for the debt-ridden company.
According to the press release, Arpwood Capital and JM Financial have been appointed as financial and transaction advisors, whereas Alvarez and Marsal have been hired as the restructuring advisor to the company’s board.
The company’s board said in a statement that the financial and transaction advisors, along with other advisors, will guide the new board on solutions for resolution for the crisis-burdened IL&FS. The task valuations across divestment and monetisation will also be undertaken by these two agencies.
Meanwhile, the restructuring advisor will assist the board in maintaining strict controls and managing liquidity on a day-to-day basis at all levels in the group.
According to the IL&FS press release, “At a meeting of the board of directors of IL&FS held last week, the board had considered it important to harmonise all asset monetisation activities, including ongoing initiatives, and to undertake the same in a transparent and speedy manner aligned with the broader objective of optimising the interest of different stakeholders.”
As of March 2018, IL&FS owes over Rs. 91,000 crores to banks and other creditors. On Oct. 1, the government superseded the board of IL&FS and appointed a new board, with banker Uday Kotak as its executive chairman.
Earlier this week, the National Company Law Appellate Tribunal (NCLAT) stayed all proceedings against IL&FS and other group companies after an urgent petition filed by Ministry of Corporate Affairs.
