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to look after divestment of assets and other strategic initiatives
In the backdrop of the cash-strapped IL&FS Group plunging into a crisis following the resignations of directors and MD & CEO of subsidiary IL&FS Financial Services (IFIN), IL&FS Transportation Networks Ltd (ITNL), another IL&FS subsidiary, on Saturday said Dilip Bhatia has been appointed as Chief Strategy Officer responsible for divestment of assets and other strategic initiatives "on a dedicated basis".
Following this appointment, ITNL, in a stock exchange notice, said Bhatia will relinquish his responsibilities as Chief Financial Officer (CFO) and Key Managerial Personnel of the company with immediate effect. The company added that in due course it will look for a suitable candidate for appointment as CFO.
Infrastructure development and finance company IL&FS is facing liquidity issues. This is underscored by the recent delays in repayment of maturing commercial papers and default in repayment of inter-corporate deposit from SIDBI.
On September 20, IFIN had informed the exchanges about the resignations of five directors, including four independent directors -- Renu Challu (resigned with effect from September 17), Surinder Singh Kohli (September 19), Shubhalakshmi Panse and Uday Ved (September 20) -- and a Non-Executive Director Vibhav Kapoor (September 20). On September 21, IFIN said its Managing Director & Chief Executive Officer Ramesh C Bawa had resigned.
Rating agencies have downgraded IL&FS and some of its subsidiaries. The company management has claimed that around Rs 10,000 crore of the IL&FS Group liquidity is stuck in claims and termination payments.
"Our monies were used to fund the cost and time overruns caused by Concession Authority delays in handing over Right of Way. It is our case that if Concession Authorities release these (our) monies, we would not be in the situation we are in.
"What makes the situation doubly worse is that none of the recapitalisation plans fructified. With our money stuck and no new capital to raise more money, the Group has been facing financial stress. This crisis has been brewing for some time now and with every attempt to rectify the situation coming to naught, it came to a head this quarter. Obviously, much depends on this infusion of liquidity," said a communication from the management to the employees.
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