InvestorQ : With Kotak getting an extension, can we expect an early resolution to IL&FS issue?
swati Bakhda made post

With Kotak getting an extension, can we expect an early resolution to IL&FS issue?

Answer
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Sam Eswaran answered.
1 month ago


You are right that Uday Kotak has got the second extension as the chairman of the Borad of IL&FS, which is bankrupt and currently under administration. The idea is to have continuity till there is a workable solution can be found for the problem.

IL&FS went bankrupt in 2018 with total debt of Rs.90,000 crore. The new board had to spend a few months completing the forensic audit and understanding the maze of group companies that IL&FS had build assiduously to perpetrate the fraud on the public.

The next challenge for Uday Kotak is to organize the monetizing of a plethora of assets across businesses to be able to collect the necessary liquidity. Uday Kotak is the founder of the Kotak Mahindra Bank and is respected as one of India’s foremost finance professionals.

However, after 2 years, the board has been able to resolve only 18% of the company’s outstanding debt. The resolution was supposed to be substantially completed by Mar-20. However, it had got disrupted in a big way by the COVID-19 pandemic.