IL&FS Lenders Oppose 90-day Moratorium for Loans
Moneylife Digital Team 15 November 2018
Several lenders of Infrastructure Leasing and Financial Services (IL&FS) have opposed the 90-day moratorium over loans taken by the debt-laden group and its subsidiaries. Lenders also requested the National Company Law Appellate Tribunal (NCLAT) to allow them not to classify IL&FS accounts as non-performing assets (NPAs) in case of defaults. However, there was no decision and the NCLAT fixed 17th December as next date of hearing. 
 
Last month, the NCLAT had stayed all proceedings against IL&FS group and its 348 group companies till further orders, over an urgent petition moved by the government.
 
During the hearing on Tuesday before the Appellate Tribunal, the government submitted a revival plan for IL&FS, which is likely to take shape over the next six to nine months and also sought continuation of the moratorium for a three-month period.
 
Earlier, the ministry of corporate affairs had approached the appellate tribunal after the Mumbai bench of National Company Law Tribunal (NCLT) turned down its plea to grant 90-day moratorium over the loans taken by IL&FS and its subsidiaries. On 1 October 2018, the NCLT suspended the board of IL&FS on the government's plea and authorised reconstitution of the board by appointing seven directors two days later.
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