The new board of debt-trapped IL&FS, which was taken over by the government earlier this week, is set to meet on Thursday to decide on the agenda ahead, according to sources.

The new board led by India’s richest banker Uday Kotak has a total of six directors, including former Sebi chairman G N Bajpai, ICICI Bank chairman G C Chaturvedi, retired IAS officers Malini Shankar and Vineet Nayyar, and veteran auditor Nandkishore.

According to sources, Kotak, along with the other directors are waiting for required regulatory approvals from the Reserve Bank of India and the Securities & Exchange Board of India before chalking out an action plan.

The company’s new leaders face a whirlwind month ahead, after inheriting a restructuring process that just saw IL&FS shareholders sign off on a non-convertible debt sale, a higher borrowing limit and a rights offering. To add to that, an investigation by the federal Serious Fraud Investigation Office has been ordered.

The new board will prepare a first hand assessment report of the crisis at IL&FS before October 8, sources said.

The government, which took control of Infrastructure Leasing & Financial Services Ltd, promises to end the group’s string of defaults.

The nation's corporate affairs ministry has sought to take control of a company on just two prior occasions, and only followed through once, with Satyam Computer Services Ltd in 2009.

The company plans to honor short term payment obligations while the long term borrowing likely to be rolled over. Also the dues to government-owned entities may be restructured, said sources.

The government may push for an out-of-court settlement of cases stuck in arbitration, said sources.

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First Published:Oct 3, 2018 2:33 PM IST