IL&FS moves NCLT
The section deals with the power to compromise or make arrangements with creditors and members.
Mumbai: Debt-ridden infrastructure financier IL&FS along with its forty subsidiaries have filed a petition with the National Company Law Tribunal (NCLT) seeking certain relief in connection with filing of a scheme of arrangement under Sec. 230 of the Companies Act. The section deals with the power to compromise or make arrangements with creditors and members.
When a compromise or arrangement is proposed by either the company or the creditor, the tribunal will order a meeting of the creditors or class of creditors, or of the members or class of members.
The scheme will be approved if majority of persons representing three-fourth in value of the creditors, or class of creditors or members or class of members cast their votes in its favour.
The crisis, which has forced it to delay and default on couple of its debt obligations had roiled domestic markets over the last two days with lender having exposure to the group companies coming under heavy selling pressure. The company has to repay Rs 2,000 crore by the end of September.