As per Govt-appointed board of directors, soon eight to ten subsidiaries of Infrastructure Leasing and Financial Services Ltd (IL&FS) will go up for sale, as the committee is searching a turnaround scheme for the group through the sale of some companies.
Secretary in the Ministry of Corporate Affairs, Injeti Srinivas said that the planned sale of two entities made earlier this month was overwhelming. This indicates a revival of IL&FS group through the sale of some group’s entities which are not able to service debt.
Srinivas told reporters during the FICCI’s conference on the bankruptcy code, “I understand that expressions of interest for another 8-10 companies will be called for shortly. We are well into the process of the sale of subsidiaries as going concerns and (we) will ensure maximum possible realisation (of value) and then meet repayment obligations.”
As per Srinivas, most banks and other financial institutions when called for expressions of interest earlier this month has shown interest for IL&FS Securities Services Ltd and ISSL Settlement & Transaction Services Ltd.
He also said that since the bankruptcy code came into existence, 9000 cases have come to bankruptcy tribunals. Out of which 85% of them, were disposed of prior to admission in the NCLT itself. Meanwhile, Rs 1.2 trillion has reportedly come from the resolution of cases under IBC.
Srinivas added that “the direct and indirect impact of the Insolvency and Bankruptcy Code close to Rs 3 trillion, which is a huge amount.”