Money & Banking

NCLAT fixes next hearing on IL&FS moratorium for Dec 17

Our Bureau Mumbai | Updated on November 13, 2018 Published on November 13, 2018

The board of IL&FS on Monday began implementing the resolution plan and has initiated measures for asset monetisation   -  REUTERS

Lenders have opposed the moratorium over loans

The National Company Law Appellate Tribunal (NCLAT) on Tuesday fixed December 17 as the next date of hearing on the proposed 90-day moratorium on loans taken by Infrastructure Leasing and Financial Services (IL&FS) and its subsidiaries.

Lenders, including banks and financial institutions, are understood to have opposed the moratorium over the loans. Further, they have also asked the appellate tribunal to allow them not to classify IL&FS account as an NPA in case of non-payment.

Revival plan submitted

Meanwhile, the government informed the appellate tribunal that it has submitted a revival plan for IL&FS, which is likely to take shape over the next six to nine months. It also sought that the moratorium should continue for a three-month period.

The Ministry of Corporate Affairs had approached the NCLAT after the Mumbai Bench of the National Company Law Tribunal had declined its plea for the 90-day moratorium on creditor proceedings. The government has sought the moratorium to help the resolution plan take full shape so that IL&FS can pay off its debt.

The NCLAT had on October 15 stayed all proceedings against IL&FS group and its 348 firms till its further orders, over an urgent petition moved by the Government.

The previous board of IL&FS was suspended by the NCLT on October 1 based on a please by the government and a new board was reconstituted.

On Monday, the board of IL&FS began implementing the resolution plan and has initiated measures for asset monetisation.

Published on November 13, 2018
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