Remember the Infrastructure Leasing & Financial Services crisis, the closest India has come to facing a Lehman Brothers moment? With Rs 1.15 lakh crore in unresolved debt and a knock-on impact on India’s debt market and shadow lenders, chances are you do.
In what seems to be good news on this front, an 8 July story carried by the Times of India, quoting C.S. Rajan, managing director of IL&FS, said that an estimated 61% of the overall debt (as of October 2018) was set to be resolved.
The company has managed this through a combination of court-approved sales and settlements. Given that there is no legislative or regulatory regime to deal with group insolvency, the board adopted a multipronged approach — depending on the type of asset — by focusing on resolution, restructuring