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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The management of the bankrupt group claims to have resolved 61% of its massive debt. Reality or window dressing?
Editor's note: 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 and recovery. From ‘At 61%, IL&FS recovery may beat IBC’s 39%’ - 8 July The Times of India This is an extremely healthy outcome given that the average recovery under the Insolvency and Bankruptcy Code, or IBC, stands at just 39%. So, it would seem that Uday …
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Atanu Chakraborty’s resignation does not appear as damaging as the bank’s response to it. The ‘all is well’ narrative needs an independent audit.
The platform’s pre-IPO debt funding raises fresh questions about cash flows and SEBI’s role. Investors will do well to take note.
