IL&FS looks to sell stake in insolvent cos’ with a ‘haircut’


New Delhi: IL&FS Group has contacted NCLAT To ask for permission to sell your stake withhaircut“And without shareholders' approval Its companies, which are insolvent with unsustainable debts and have been placed under Category II list of the resolution framework.
The government had sought time to file a reply from NCLAT in the last hearing on IL&FS's interim application to sell stake in group entities falling under Category II, whose highest bid amount was less than their debt.
In the process, “lenders, as well as shareholders, will anyway have to take a cut for their respective debt/and equity,” IL&FS said, adding that it would look at the revival of such an entity while balancing the interests of stakeholders. Will also ensure. The resolution of such companies is in line with the process followed under the Insolvency and Bankruptcy Code, where the requirement of taking consent from shareholders has been dispensed with, IL&FS submitted. agencies

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