Deals
The Untold Tale Behind Modi's Shock Takeover of a Risky Lender
- Finance Minister is said to have signed off on IL&FS coup
- India’s budget plans and election shaped bold seizure move
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With the future stability of the Indian financial system on the line, executives running a giant infrastructure lender gathered at the company’s glassy, modernist headquarters in Mumbai and hammered out an ambitious restructuring plan last Saturday to manage a $12.6 billion debt burden after a string of defaults.
Except that they weren’t really calling the shots any more. The very next day, the government in New Delhi authorized a plan to sweep in and seize control of Infrastructure Leasing & Financial Services Ltd., a vast conglomerate that’s raised billions of dollars in the corporate bond market and powered the nation’s public project building boom.