Millennium Post

At NCLAT, lenders oppose moratorium over IL&FS loans

New Delhi: Lenders of IL&FS group Tuesday opposed before the NCLAT the 90-day moratorium over the loans taken by the debt-laden group and its subsidiaries.

The banks have also asked the appellate tribunal to allow them not to classify IL&FS account as NPA in case of non-payment.

Meanwhile, the government informed National Company Law Appellate Tribunal (NCLAT) that it has prepared a roadmap to revamp the company.

The tribunal has fixed December 17 as the next date of hearing. On October 15, NCLAT had stayed all proceedings against IL&FS group and its 348 firms till its further orders, over an urgent petition moved by the government.

The Ministry of Corporate Affairs had approached the appellate tribunal after the Mumbai bench of National Company Law Tribunal (NCLT) turned down its plea to grant 90-day moratorium over the loans taken by IL&FS and its subsidiaries.

The NCLT on October 1 suspended the board of IL&FS on the government's plea and authorised reconstitution of the board by appointing seven directors two days later.

Meanwhile, Private sector lender IndusInd Bank Tuesday said its agreement to fully acquire IL&FS Securities Services Ltd (ISSL) has been terminated due to non fulfilment of conditions.

In June this year IndusInd Bank had signed a share purchase agreement with Infrastructure Leasing and Financial Services Ltd (IL&FS) to acquire its securities services subsidiary.

"The share purchase agreement (SPA) stands terminated as all the conditions precedent were not satisfied within the stipulated time period," IndusInd Bank said in a regulatory filing.

ISSL, incorporated in 2007, is a capital market intermediary for professional clearing, depository and custodial services and caters to both retail and institutional clients including over 1,000 brokers, FPIs and FIIs.

"We understand that the newly constructed board of directors of IL&FS has decided to initiate a new process for the sale of its equity interests in ISSL," IndusInd Bank added.

Meanwhile, In a bid to monetise its assets, crisis-ridden IL&FS Monday initiated the process for divesting its stake in IL&FS Securities Services and ISSL Settlement & Transaction Services.

"As stated in the said Report, it is the objective of the board to achieve, by one or more plan(s), the resolution of the IL&FS group through certain measures, including asset divestments," the debt-ridden company said in a statement Monday.

The release further said that in order to ascertain market interest, and to examine feasibility of maximisation of value in an orderly and transparent manner, the board, while continuing to evaluate all options, on Monday initiated the process of exploring the sale of an asset engaged in the securities services business.

Next Story
Share it