IL&FS Financial crisis: IL&FS Transportation defaults on interest payment of NCDs

IL&FS Transportation Network, an entity of the crippled IL&FS group, Tuesday said it has again defaulted on interest payments on six of its NCDs.

The company in a regulatory filing said all the payments were due between October 29 and 30, 2018.

Total interest payment due was about Rs 7.11 crore.

It had earlier on October 3 announced default on interest payment.

Interests on the non-convertible Debentures (NCDs) issued by the company were not paid to the debenture holders due to insufficient funds, it said.

On October 3, rating agency ICRA downgraded a series of debt instruments of IL&FS Transportation Networks. These included non-convertible debentures (NCD), term loans, preference shares as well as commercial papers.

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 earlier this month and appoint a new six-member board under the chairmanship of banker Uday Kotak in a Satyam Computer style takeover.

IL&FS Transportation Network shares ended 1.27 per cent lower at Rs 19.40 on the BSE.

Last week, IL&FS Transportation Networks said it proposed to divest its stake in certain road projects to ease liquidity concerns.

IL&FS and its subsidiaries have defaulted on several debt repayments recently due to a liquidity crisis. It needs an immediate capital infusion of Rs 3,000 crore and is also planning a Rs 4,500-crore rights issue.

(With inputs from agencies.)