Kotak Mahindra Bank Managing Director Uday Kotak is allowed by the government to recommence as the head of bankrupt infra lender IL&FS for an extra year. This is the second time that he received an extension for his tenure.
In the year 2018, the Government appointed Uday Kotak as the head of the lender’s board to complete the resolution of the company and its subsidiary companies, which are under the debt of more than ₹90,000 crore.
It is almost after two years of his tenure at Infrastructure Leasing and Financial Services (IL&FS), that the Kotak-led board of directors were able to resolve 18% of the company’s outstanding debt of over ₹1 lakh crore.
While a major resolution was expected to be completed by March, but the procedure had to face many legal and regulatory delays due to covid-19 pandemic and further it led to the slowing down of the resolution of the bankrupt shadow banker and construction firm.
In July this year, the board assured that it would be able to resolve ₹50,590 crore debt by March 2021, and rest ₹6,650 crore by the FY22.
IL&FS group is in its advanced stages to conclude the sale process of 15 entities with a resolution of nearly ₹8,500 crore. It is planning the restructuring of additional debt of ₹4,900 crore.
From 347, the number of subsidiaries of the group has reduced to 276. It is expected to further come down to around 60 by March next year.
The board members have developed a group resolution framework that received National Company Law Appellate Tribunal’s (NCLAT) approval in March this year.
In the last month, the Group also concluded the sale of its 73.69 per cent stake in the education business, held under Schoolnet India Limited (SIL), to Falafal Technologies Private Limited.