The government will take a Satyam-like approach to deal with IL&FS situation.
The Centre has moved the National Company Law Tribunal (NCLT) in Mumbai for a change in management of Infrastructure Leasing & Financial Services (IL&FS), sources have told Moneycontrol.
The government is likely to supersede the company board and will take a Satyam-like approach to deal with the situation, officials said. An order is expected as soon as this afternoon.
IL&FS is facing a debt crisis, having defaulted on payments several times in the past few months. Issues at the infrastructure lender have boiled over and spread to financial markets in general, keeping both the stock and bond markets jittery recently.
The company said on Saturday that it will develop a comprehensive restructuring plan for the group to pay its liabilities, as it aims to cut its debt.
To be updated.