In a letter to employees today, Mr Hari Shankaran, vice chairman and close associate of founder Ravi Parthasarathy announced a series of measures to deal with the crisis at IL&FS. However, what is clear is that the same management team remains in charge with the exception of Mr Ramesh Bawa who, the letter says has resigned.
IL&FS identifies 25 assets for sale.
Expects asset sale to reduce debt by over Rs30,000 crore.
Claims expression of interest in 14 of the 25 identified assets
Forms management committee comprising closest associates of founder Ravi Parthasarathy: Mr Hari Sankaran, Mr Arun Saha, Mr Vibhav Kapoor, Mr K Ramchand, Mr Kaushik Modak, Mr RCM Reddy, Mr Ashwani Kumar, Mr Mahesh Babu, Mr Mukund Sapre
Mr Ramesh Bawa, head of IL&FS Financial (IFIN) resigns. Mr Kaushik Modak replaces him as CEO.
Insiders say he has been asked to go. Sources say that an anonymous whistleblower’s letter about goings-on in IFIN may have been the primary reason. Here is what Mr Hari Shankaran wrote to employees:
At the very outset, I want to thank each and everyone of you for waking up in the morning, reading the newspaper over a cup of tea or coffee, and still coming to Office !. Yesterday, I had an opportunity to speak to IFIN folks in an impromptu town hall and today with Nalanda. It is important that we all meet as often as we can to share concerns and focus on the key issues
You will recall that some 25 assets have been identified for sale. Together, sale of these assets will result in a reduction in our debt of over Rs30,000 crores. In a remarkable sign of confidence, 14 of the 25 assets have received expressions of interest with offers around our expected benchmark of valuation
Given the scale of efforts being made, we need to expand the Group Management Board and make it more inclusive. Accordingly, I am pleased to announce that the Board concurred with the induction of the following individuals to form Group Management Board will now comprise of:
Mr Hari Sankaran
Mr Arun Saha
Mr Vibhav Kapoor
Mr K Ramchand
Mr Kaushik Modak
Mr RCM Reddy
Mr Ashwani Kumar
Mr Mahesh Babu
Mr Mukund Sapre
Please join me in congratulating them and wishing them all the very best
Mr Ramesh Bawa has requested to be relieved of his responsibilities. In a Meeting of the IFIN Board, his resignation was accepted. The Board noted that Mr Bawa had joined IL&FS in the mid nineties and had worked hard and selflessly for the Group. He has kindly consented to be available to provide continuity in closing out on initiatives that are at an advance stage of closure
Mr Kaushik Modak will assume responsibility as CEO of IFIN, and will lead the implementation of the new business model which our colleagues in IFIN have been developing over the past 12 months
The press have been having a field day in reporting on the IL&FS Group. Please be rest assured that we are working on a comprehensive and integrated plan to restore normalcy across the Group. On September 29, 2018, the IL&FS AGM will vote on increasing IL&FS authorised capital to Rs4,500 crores. This will be the starting point for the implementation of a plan to restore normalcy
I will keep you updated on developments as they unfold, but please be assured that we are all aligned to one purpose: the resumption of IL&FS business verticals in the fields of Infrastructure and Financial Services.