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IL&FS defaults on interest payments again; 3rd time this month

Devdiscourse News Desk
Updated: 24-09-2018 23:24 IST

For the third time in a month, crippled infrastructure conglomerate IL&FS Financial Services Monday defaulted on interest payments on commercial papers.

The interest payment on the papers was due Monday, the company informed the exchanges. The company said it will not be able to access commercial papers market for up to six months from the date of repayment of this obligation. The company did not quantify the default amount.

"The commercial papers which were due on September 24, could not be serviced by the company," the company said in a BSE filing. Last Friday, its managing director and chief executive Ramesh C Bawa and some keyboard members had resigned amid the crisis in the IL&FS group for alleged defaults in loan payments and corporate governance issues.

The infrastructure conglomerate has come under the scanner of multiple regulators, including Sebi, for alleged defaults related to financial disclosures and corporate governance.

Earlier this month, it came to light that IL&FS group defaulted on a short-term loan of Rs 1,000 crore from Sidbi, while a subsidiary has also defaulted Rs 500 crore dues to the development finance institution.

While IL&FS group has a consolidated debt of Rs 91,000 crore with IL&FS alone having nearly Rs 35,000 crore, IL&FS Financial Services Rs 17,000 crore, which sits as the standard asset for most of the lenders, according to a Nomura India report.