Infrastructure Leasing and Financial Services Ltd.: Corporate Governance Failure

內容大綱
In June 2018, Infrastructure Leasing and Financial Services, Ltd., one of the largest infrastructure and financial services companies in India, shocked the investment community by defaulting on several debt repayments. Its previously highly-rated debt instruments were downgraded, triggering fears of a market liquidity crisis. In an attempt to defuse the crisis, the Government of India appointed an interim board of directors comprised of industry professionals. The new board faced the difficult task of getting the company back on track, but it first needed to answer several questions: What governance and intermediation failures led to this crisis? What was the company’s current financial position? What options were available to remedy the situation?
學習目標
This case can be used in graduate-level courses on advanced corporate finance, basic corporate governance, or corporate restructuring, or in modules on project or corporate financing. The case highlights governance and intermediation failures (i.e., governance scandals) and discusses the role of corporate control in resolving high-profile failures, as well as the generic options available to corporate boards to deal with financial distress. After working through the case and assignment questions, students will be able to<ul><li>identify earnings management in public corporations;</li><li>understand the reasons behind governance failures at major corporations;</li><li>assess the roles of different mechanisms, including board committees, incentive compensation, and the government, in directing a company’s affairs; and</li><li>evaluate generic options to resolve financial distress.</li></ul>
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