IL&FS Financial Services declares fresh defaults of Rs 395 cr


Team Udayavani, Sep 28, 2018, 11:30 AM IST

New Delhi: IL&FS Financial Services on Thursday said it has defaulted on seven fresh payment obligations worth Rs 395.46 crore.

The company was unable to service its obligations in respect of bank loans (including interest), term deposit and short-term deposit, it said in a regulatory filing.

These defaults were in respect of five bank loans (including interest) totalling Rs 239.50 crore, term deposit obligation of Rs 103.53 crore and short-term deposit worth Rs 52.43 crore.

The short-term deposit of Rs 52.43 crore was due for September 27, 2018, while the term deposit of Rs 103.53 crore was to be serviced on September 25.

In bank loan repayments, it defaulted on Rs 100.60 crore and Rs 50.30 crore obligations due for September 24, while a Rs 62.90 crore loan due on September 26 could not be serviced.

It also defaulted on loan repayments of Rs 50.20 crore (due September 16) and Rs 20.50 crore (September 12), IL&FS Services said in the filing.

Having already declared three defaults this month, the company has thus far not been able to service a total of 10 obligations.

On Monday, it had disclosed defaulting on interest payments on commercial papers.

Following this, the company has been barred from accessing the commercial papers’ market for up to six months from the date of repayment of this obligation.

The troubled IL&FS group has been on a spree of defaults which led to resignation of IL&FS Financial Services Managing Director and Chief Executive Ramesh C Bawa and some key board members on September 21.

Amidst monetary defaults, the group is also grappling with corporate governance issues.

IL&FS has an aggregate debt pile of Rs 91,000 crore and it has been downgraded to junk status by rating agencies following the default.

Of this, Rs 57,000 crore are bank loans alone, most of which are from state-run lenders.

State-owned LIC is the largest shareholder with a fourth of the firm’s equity, while Orix Corporation of Japan owns 23.5 per cent.

Other shareholders include Abu Dhabi Investment Authority with 12.5 per cent stake, IL&FS Employees Welfare Trust with 12 per cent, HDFC with 9.02 per cent, Central Bank of India with 7.67 per cent and State Bank of India (SBI) with 6.42 per cent at March-end 2018.

IL&FS Financial Services earlier also informed the stock exchanges that Infrastructure Leasing & Finance Services Limited (IL&FS), the promoter and majority shareholder of the company, filed an application with the National Company Law Tribunal, Mumbai Bench on September 24 seeking certain reliefs in connection with filing of a scheme of arrangement under Section 230 of the Companies Act, 2013.

LIC and SBI have stated that they will not let the financial conglomerate to collapse and efforts are on to help the entity.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

After Yogi’s ‘batenge, katenge’ slogan, PM pitches for unity with ‘Ek hai, toh safe hai’ message

“Coming soon.. 2025”: KL Rahul and Athiya Shetty announce first pregnancy

Mangaluru: Unauthorized bus stops at signals fuel traffic woes and safety concerns

SC notice to Karnataka, DK Shivakumar on CBI plea against withdrawal of consent by state govt

Will remain active in politics till my last breath: JD(S) patriarch & ex-PM Deve Gowda

BJP calls Congress govt ‘laughing stock’ as ‘samosa politics’ heats up in Himachal

Related Articles More

NSE, BSE to be closed on Nov 20 for Maharashtra assembly polls

Sensex, Nifty fall for 2nd day on FII selling; RIL, ICICI Bank major drag

Sensex, Nifty fall over 1 pc, snap two-day rally ahead of US Fed interest rate decision

SC orders liquidation of grounded air carrier Jet Airways’ assets

Home-cooked meals become dearer in October on costlier vegetables

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

BCCI vs PCB spar on CT venue as Naqvi denies receiving any official note from Indian board

Use Carnatic music to promote Kannada language: Nirmala Sitharaman

Udupi: Car collides with bike; Rider injured

UP women’s body proposes men shouldn’t tailor women’s clothes or cut their hair

NSE, BSE to be closed on Nov 20 for Maharashtra assembly polls

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.