Opinion | Kill IL&FS’ toxic culture by dismembering it
6 years, 2 months ago

Opinion | Kill IL&FS’ toxic culture by dismembering it

Live Mint  

The $12.8 billion bankruptcy of shadow lender Infrastructure Leasing & Financial Services Ltd. is starting to offer a glimmer of hope. The good news is that the new government-appointed board, which can resolve the insolvency without creditors swooping in on assets held across 347 IL&FS firms, has drawn up three sensible approaches. If IL&FS is sold in its present form, its toxic culture, which has for three decades involved inflating project values, shortchanging partners, self-dealing by senior management, and building cozy relationships with civil servants, will eventually revive. The time to bring in a new investor would be when operating verticals have been mostly sold: for instance, roads to the National Highway Authority, and the electricity business to the National Thermal Power Corp. That’s what I’ve recommended, and that’s the second approach the new board wants to consider. Besides, projects that are stuck awaiting land allotment, environmental clearance or financial closure would deliver better value if bundled together with others yielding stable cash flows.

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History of this topic

How Uday Kotak fixed IL&FS
2 years, 8 months ago

How Uday Kotak fixed IL&FS

India Today  

When the crisis at IL&FS exploded in September 2018, many saw it as India’s Lehman Brothers moment, when the US investment banking firm collapsed ahead of the 2008 global financial crisis. IL&FS had amassed a debt of Rs 99,355 crore—nearly as much as the Centre’s allocation to states to build infrastructure projects this fiscal—the bulk of it borrowed from public …

IL&FS crisis: Uday Kotak gets one-year extension on bankrupt infra lender's board, exemption given on RBI recommendation
5 years, 3 months ago

IL&FS crisis: Uday Kotak gets one-year extension on bankrupt infra lender's board, exemption given on RBI recommendation

Firstpost  

Kotak was appointed by the government as the head of the lender’s board which will help the troubled company come out of difficulties after the state took over the board. Mumbai: The government on Tuesday allowed Kotak Mahindra Bank managing director Uday Kotak to continue as the head of bankrupt infra lender IL&FS for one more year. The statutes will …

NCLT Seeks Details Of Personal Assets Of Former IL&FS Executives
6 years, 1 month ago

NCLT Seeks Details Of Personal Assets Of Former IL&FS Executives

The Quint  

Three of the nine named by the Serious Frauds Investigation Office in a report prepared on 30 November were accused by the government of mismanagement at IL&FS. They are Ravi Parthasarathy, former chairman who resigned in July; Hari Sankaran, former vice-chairman and managing director; and Arun K Saha, joint managing director and chief executive officer. The other six named by …

IL&FS crisis: Govt seizes control of debt-trapped firm; these are 15 members of board that were dismissed
6 years, 3 months ago

IL&FS crisis: Govt seizes control of debt-trapped firm; these are 15 members of board that were dismissed

Firstpost  

The government on Monday seized control of debt-trapped Infrastructure Leasing and Financial Services, superseding its board with one led by India’s richest banker Uday Kotak, and vowed to stop further loan defaults. The Mumbai-bench of National Company Law Tribunal approved six directors, including Kotak Mahindra Bank MD Uday Kotak, former SEBI chairman GN Bajpai and ICICI Bank chairman GC Chaturvedi, …

IL&FS crisis: Can the new Uday Kotak-led bailout panel provide the magic touch to debt-laden firm?
6 years, 3 months ago

IL&FS crisis: Can the new Uday Kotak-led bailout panel provide the magic touch to debt-laden firm?

Firstpost  

Any move by the government or the regulators to protect the interest of a large financial institution like IL&FS and to address the contingent effects of the episode is a welcome move as it will help in regaining the market confidence. The Infrastructure Leasing & Financial Services debt saga has entered a decisive phase with the government dissolving the IL&FS …

IL&FS rot needs to be stopped from spreading
6 years, 3 months ago

IL&FS rot needs to be stopped from spreading

Live Mint  

A tad late, but the message is finally reaching India’s regulators: Infrastructure lender IL&FS is not a business that can be allowed to fail without consequences. Some of the group’s finance companies are now missing repayments on short-term paper, even as the unlisted parent’s owners, including state-run Life Insurance Corp. of India, dawdle over an emergency infusion of funds. The …

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