IL&FS arm redesignates CFO to lead asset sale

As the Infrastructure Leasing & Financial Services (IL&FS) group finds itself in a storm of defaults, the group's infrastructure arm, IL&FS Transportation Networks (ITNL), has redesignated Chief Financial Officer Dilip Bhatia as its chief strategy officer.

"Considering the strategic priority of monetisation of the company's project assets and generating liquidity, the board of directors has redesignated Dilip Bhatia chief strategy officer, responsible for divestment of assets and other strategic initiatives," the company said.

With the rejig, Bhatia will relinquish his responsibilities as the firm's CFO. "The firm will look for a suitable candidate for the CFO's position," the company added.

In August, ITNL had informed analysts on an investor call that the company was looking at a mix of asset sale, fund-raising, debt refinance and some renegotiated contracts to tide over its troubles. "Three assets will be sold to one investor, and this plan is at an advanced stage. If successful, it should see money flowing within the next 60 days. There is another bunch (road projects) for which due-diligence is underway," a senior executive said on that call. As of June 2018, the company said it had an outstanding debt of ~147 billion at the standalone level.

Part of ITNL's asset portfolio includes around 20 operational road projects.

Bhatia had said on the investor call that seven in India and one in China were being considered for divestment.

At the group level, this development comes a day after Ramesh Bawa, managing director and chief executive officer at IL&FS Financial Services (IFIN), and five directors resigned from its board.