The government-appointed board of Infrastructure Leasing & Financial Services (IL&FS), which met in Mumbai on Thursday, will submit a revival plan with the National Company Law Tribunal (NCLT) on October 31. The board hasn’t sought a bailout by the government; instead, it plans to monetise some assets for revival, an official source said. Meanwhile, the Prime Minister’s Office (PMO) is learnt to have held a meeting on Thursday to review the crisis at IL&FS, another source told FE. The meeting is understood to have taken stock of measures being planned to resolve the crisis swiftly to prevent its contagion from spilling over to the broader financial system.
The new board under Kotak Mahindra Bank vice-chairman Uday Kotak will hold formal meetings with shareholders as well as lenders once the plan is submitted with NCLT on October 31, and initiate the monetisation process, said the sources. Entities that are in relatively good shape and are servicing their own debt won’t be put on sale for the time being. Initially, road projects will likely be on the block, followed by some power assets. Bids for various projects are expected to be invited by as early as December. IL&FS Financial Service, a non-banking finance company and a 100% subsidiary of IL&FS, and IL&FS Energy Development are also likely candidates for a stake sale as well.