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Appoints Vineet Nayyar as MD, chalks out roadmap to put troubled firm back on track by month end
The newly appointed board of troubled project developer and financier Infrastructure Leasing and Financial Services (IL&FS) met on Friday to take stock of the situation, and started preparing a roadmap to bring the company out of the trouble. However, chairman of the board, Uday Kotak, indicated that the journey would be a challenging one. To start with, the board appointed one of its members — Vineet Nayyar — as vice-chairman and managing director.
Statutory committees
It also formed four statutory committees — audit committee, nomination and remuneration committee, stakeholder relationship committee and corporate social responsibility committee, and appointed members. “The board undertook an initial assessment of the ground situation and the way forward. With a view to preserving the value, the board will take necessary steps with respect to the company and its subsidiaries, joint ventures and associates,” Mr. Kotak told reporters after the meeting which went on for more than five hours. Indicating the mammoth challenge that lies ahead, Mr. Kotak said the board had found that there were 348 entities as part of the group, significantly larger than what it was aware of (169 entities). “And this underscores the task at hand,” he said.
Mr. Kotak emphasised that the board was committed to an objective process to make a fair assessment of facts, and acting in the interest of different stakeholders to rebuild trust. Its aim was to ensure fair value and resolution of the enterprise having regard to all its complexities. The immediate responsibility of the board would be to prepare a roadmap for its revival by October 31, as directed by the National Company Law Tribunal (NCLT). “Our first objective is to work towards a comprehensive roadmap on the way forward. Our core aim is to ensure fair value, resolution of the enterprise, having regard of its complexities,” Mr. Kotak said adding that the board would meet frequently. The board was also briefed in detail by the legal advisers on the current issues. The management team of the company gave a presentation on the corporate and organisation structure and the current financial condition of the group. The board undertook an initial assessment of the ground reality and the way forward, the company said in a statement. Mr. Kotak indicated that future defaults would not be easy to avoid with the total debt at Rs. 91,000 crore. “When you have a situation like this where the overall size of the debt is significant, the complexity structure is a challenge,” he said.
Source : https://www.thehindu.com/todays-paper/tp-business/new-board-embarks-on-reviving-ilfs/article25127871.ece
