\'Multiple options explored\, selling IL&FS as going concern best case scenario\'


'Multiple options explored, selling IL&FS as going concern best case scenario'

'Multiple options explored, selling IL&FS as going concern best case scenario'

The government is mulling the sale of crisis-hit Infrastructure Leasing and Financial Services (IL&FS) as one of the options to resolve issues facing it, Corporate Affairs Secretary Injeti Srinivas said Monday.

IL&FS, which arranged financing for infrastructure projects, has amassed huge debts and has defaulted on payment obligations for some.

"Whatever is in the best interest of the stakeholders, including public interest, will be the factor which will guide a resolution," he said. 

"As far as IL&FS is concerned, I think the report which has been submitted to the National Company Law Tribunal (NCLT) articulates the approach. So it could be in the best scenario that IL&FS as a group enterprise is sold as a going concern," he added.

However, there are serious issues and the likelihood of such an outcome is limited, he said.

The government has seized control of IL&FS and ordered an inquiry by the Serious Fraud Investigation Office.

"There are alternative approaches of looking at separate verticals, and verticals going as one consolidated entity. And the last approach is that you have an asset level sale," he said.

But what seems most probable is to have a combination of all the three approaches, he said.

"All the three approaches in some sort of permutation and combination can ultimately be the outcome," he said.

Earlier, The new board of the troubled IL&FS has found that one of the group subsidiaries, IL&FS Financial Services' (IFIN) outstanding loans and investments to other group entities are much higher than the permissible regulatory caps for the three years ending fiscal 2018.

This finding, a part of the progress report and way forward, was submitted to the Mumbai bench of the National Company Law Tribunal (NCLT) by the government-appointed board Wednesday.

It comes amidst the ongoing tussle between the government and the Reserve Bank which has refused the former's demand to open a special liquidity window for NBFCs which are hit by liquidity crunch following the crisis at Infrastructure Leasing & Financial Services (IL&FS).