Lok Sabha Question No. 73 (STARRED), answered on 2018-12-14
Subject: Restructuring of IL&FS
Ministry: CORPORATE AFFAIRS
Asked by: KINJARAPU RAM MOHAN NAIDU

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

STARRED QUESTION NO. *73

ANSWERED ON FRIDAY, THE 14 TH  DECEMBER, 2018 AGRAHAYANA 23, 1940(SAKA)

RESTRUCTURING OF IL&FS

QUESTION

*73.  SHRI RAM MOHAN NAIDU KINJARAPU:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

(a)the details of the progress achieved in restructuring of Infrastructure Leasing & Financial Services Limited (IL&FS) and its subsidiaries; (b)the details of preliminary plans to service the debt of the company; and (c)the  details  of  the  monthly  interest  payments  of  the  said  company  and  the estimated monthly cashflows accruing to IL&FS and its subsidiaries along with

- the estimated net worth of IL&FS?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS                         (SHRI ARUN JAITLEY)

कारपोरेट कार्य मंत्री

(

(a) to (c) A Statement is laid on the Table of the House.

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श्री अरुणजेटली )

STATEMENT REFFERED TO IN ANSWER TO PART (a) to (c) OF LOK SABHA STARRED QUESTION NO. *73 FOR 14 TH DECEMBER, 2018 REGARDINGRESTRUCTURING OF IL&FS. (a)  to  (c):  Based  on  the  application  filed  by  the  Central  Government  under section 241 and 242 of the Companies  Act, 2013, which deal with mismanagement  and  oppression  and  action  detrimental to the public interest, the National Company Law Tribunal (NCLT) suspended the erstwhile Board of Directors of Infrastructure Leasing and Financial Services Limited (IL&FS) and allowed the Central Government to constitute a new board with up to ten (10) directors with prior approval of NCLT. The newly appointed board consisting of six (6) directors has been tasked with the responsibility of bringing about an orderly resolution with respect of IL&FS and its group companies by way of maximization of value of assets and balancing the interest of all stakeholders. At the time of takeover of the management  of  the  IL&FS  and  its  group  companies,  it  had  accumulated losses  of  Rs.  2,394.77  crores  as  on  31.03.2018  on  consolidated  basis  and with  negative  cash  flows.  Accordingly,  with  a  view  to  enable  an  orderly resolution,  the  Central  Government  prayed  for  moratorium  of  three  (3) months against all payment(s) and re-payment(s) obligations which has been allowed  by  the  National  Company  Law  Appellant  Tribunal  (NCLAT)  on  adinterim basis until further orders. The newly appointed board has taken large number of cost cutting measures to  ensure  utilization  of  limited  funds  available  with  it  to  meet  essential obligations  viz.  establishment  costs,  essential  contractual  obligations  to keep it as going concern and to preserve value. Concurrently, the new board is also working on a comprehensive resolution plan at Group level, Vertical level  and  Asset  level  or  permutation  or  combination  thereof.  Towards  this objective,  the  board  has  already  called  for  Expression  of  Interest  (EoI)  in respect of IL&FS group companies in Security and Renewable business. The response to which is very encouraging. The  newly  appointed  board  has  kept  the  NCLT  continuously  updated  on finalization and implementation of the resolution plan, which is implemented under the supervision of NCLT.

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