The board of IFL is believed to have decided the name of the new incumbent at its meeting in Calcutta today. The board was apprised of the recent happenings in IFL and also deliberated on the next course of action in the aluminium company following the break-up of the deal with Hindalco.

IFL and Indal could not be reached for comments. Ray, who was president of the sheet division, recycling and metal sourcing, is expected to join as vice-chairman and managing director. It is likely that the rest of the board will not undergo a change.

A former managing director with IFL for almost 23 years, Ray had a very short stint with Bata Ltd. Thereafter, he was with Indal for almost three-and-a-half years.

The appointment of the managing director was primary on IFL's agenda which which fellout with Hindalco recently over the latter's control for a majority stake. The company is expected to come in with an effective strategy by end-January.

Metal sourcing will be an important criteria for the company. As part of its restructuring, the company has set up a process of debt restructuring within the company. This would be in the form of buying out group company shares which is expected to fetch Rs 40 crore.

The Rs 326-crore aluminium major is also in the process of lining up loans to the tune of Rs 70 crore from ICICI to tide over its current financial crisis.

The company, at its meeting today, scrapped the earlier resolution regarding its divestment to Hindalco. A note detailing the official scrapping of the deal will be circulated to the shareholders thereafter.

IFL is saddled with huge debts resulting from a Rs 130-crore expansion programme which took capacities of the company from 13,000 tpa to 19,000 tpa. The company also plans to retire its inter-corporate deposits of nearly Rs 30crore over the next three months.