“The Board has placed on record its appreciation for the invaluable contribution made by Mr. Rajan in the resolution of the ILFS Group over the past six years and wish him the very best in his future endeavors”, said Mr. Nand Kishore, MD, IL&FS
The Group has said that it has resolved approx. Rs 55,000 crores debt till September 30, 2024, as against the Estimated Debt Resolution target of Rs 61,000 crores, representing nearly 90 per cent of aggregate estimated debt resolution value. Also, out of total 302 entities to be resolved, 188 entities have been resolved by way of monetization, transfer to InvIT and Liquidation.
“Despite having significant external dependencies and complexities associated with various Share Holders’ Agreements, multi-layered web of intragroup lending and borrowings, the new Board is confident of expeditiously resolving the balance debt as well as remaining entities within the approved resolution framework,” said Mr. Nand Kishore, MD, IL&FS.
Mr Rajan, enumerating from his IL&FS experience, said there is a need for a revised framework to address State Government defaults in paying pending dues, especially in infrastructure projects and the lessons learnt would lay foundation of future bankruptcy laws.
“Over the past six years, it has become evident that stakeholders—rating agencies, auditors, shareholders, regulators and board of directors—must play a vigilant role in keeping corporations, particularly conglomerates like IL&FS, on track. It is important that we focus on the speed and delivery of the legal system.
It is also critical to ensure accountability of the Committee of Creditors (CoC) in making timely decisions through voting and need to have enabling Policies in place to facilitate time-bound resolutions, particularly in joint ventures and companies with multiple equity partners. A revised framework is necessary to address State Government defaults in paying pending dues, especially in infrastructure projects.
IL&FS was an unprecedented default of mammoth proportions, and the lessons learned will likely serve as a foundation for the evolution of future bankruptcy laws, which are still in their infancy” he added.