Bankruptcy appeals court NCLAT on Friday suggested appointing a retired Supreme Court judge to oversee asset sales of debt-stricken Infrastructure Leasing and Financial Services Ltd (IL&FS).
The National Company Law Appellate Tribunal (NCLAT) stayed all arbitration proceedings against the cash-strapped company and ordered IL&FS to submit details of all the arbitral proceedings going on against it and its 348 subsidiaries.
However, arbitration proceedings where IL&FS is getting money will continue, the two-member bench headed by NCLAT Chairperson Justice S.J. Mukhopadhaya said.
The appellate tribunal suggested that all further proceedings of transfer of assets of IL&FS should take place under the supervision of a retired Supreme Court judge.
The group, which had a debt of more than Rs 91,000 crore at the end of March 2018, is trying to sell its companies and their assets as part of its asset monetisation efforts to pay off the dues. Next hearing on the matter will be held on January 28.
On October 1, the Central government superseded the management of IL&FS by appointing a six-member board led by banker Uday Kotak to restore its financial solvency after it defaulted on payment dues triggering liquidity concerns in the NBFC sector.
By November, the firm initiated the asset monetisation process and received over a dozen Expressions of Interest (EoIs) towards acquiring its stake in IL&FS Securities Services Ltd (ISSL) and ISSL Settlement and Transaction Services Ltd (ISTSL).
Later, it initiated the process to sell its renewable energy business, the group's interests in education (IL&FS Education & Technology Services Ltd) and the 'Alternative Investment Management' businesses, along with other subsidiary businesses.
On Wednesday, IL&FS said it received more than 30 EoIs for domestic roads vertical IL&FS Transportation Networks Ltd. It includes its domestic EPC (Engineering, Procurement and Construction) and O&M (operations and maintenance) businesses.
IL&FS Ltd is a core investment company and serves as the holding company of the IL&FS Group, with most business operations domiciled in separate companies which form an ecosystem of expertise across infrastructure, finance and social and environmental services.
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