IL&FS Transportation Network defaults on interest payments worth over Rs 20 crore

IL&FS Transportation Network, an entity of the crippled IL&FS group that was taken over by the government earlier this week, Wednesday said it had defaulted on interest payments to three of its NCD subscribers amounting to Rs 20.8 crore. 

The company in a BSE filing said all the payments were due between June 30 and September 29, 2018. 

It has defaulted on three interest payments on its NCDs, Rs 10.58 crore of interest payment on tranche 19 series B, Rs 6.95 crore on tranche 19m series A, apart from a Rs 3.24 crore on tranche 24, series 3. 

Since August 27, the group which owes over Rs 91,000 crore to various creditors, mostly banks, has been regularly defaulting on its debt obligations, forcing the government to supersede its board this Monday and appoint a new six-member board under the chairmanship of banker Uday Kotak in a Satyam Computer style takeover. 

Despite the default, IL&FS Transportation Network rallied close to 20 per cent at Rs 32.15 on the BSE, whose benchmark tanked over 550 points.

(With inputs from agencies.)