Govt to move NCLT to remove IL&FS management following serial defaults Noor Arora
Union government has decided to remove the management of IL&FS following serial defaults by the company and its subsidiaries to lenders. IL&FS has Rs 910 billion of debt and is unable to repay loans in the last one month. IL&FS has also moved the NCLT Mumbai seeking to restructure its debt under Section 230 of the Companies 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 IL&FS contagion.
ARTICLE SOURCE: BS