IL&FS approaches NCLT against bankruptcy case, draws revival plan Noor Arora
Infrastructure Leasing & Financial Services Ltd (IL&FS) and its subsidiaries defaulted on repayment to lenders this month and the group is facing a severe liquidity crunch. The company, which helped fund India’s longest tunnel, defaulted on three non-convertible notes, and had a consolidated balance sheet size of Rs 1,158 billion at the end of 2017-18. The mounting troubles at IL&FS have shaken confidence in the sector and rocked India’s stock markets on Friday. Investors, jittery about the rare default in the nation’s money markets, sold shares of financial companies. The group has seen its various long-term and shortterm borrowing programmes downgraded to 'default' or 'junk' grades by credit rating agencies, even as the regulators are also probing alleged delay in disclosure about certain loan defaults. Among others, capital markets regulator Sebi, the Reserve Bank of India (RBI), the corporate affairs ministry and the finance ministry have received complaints about alleged wrongdoings at IL&FS and its various group entities, including the listed ones.
ARTICLE SOURCE: BS