IL&FS Engineering and Construction Co defaults on redemption of preference shares

IL&FS Engineering and Construction Company on Monday said it has defaulted on redemption of preference shares worth Rs 39.5 crore in favour of Vistra ITCL (India) Ltd. The due date of redemption was September 30.

"Due to the present circumstances in relation to the company...the company is unable to redeem the preference shares on the due date," it said in a filing to stock exchanges. Default on the redemption is with respect of non-convertible redeemable cumulative preference shares and optionally convertible preference shares.

The debt crisis at the infrastructure lender IL&FS, which created a turmoil in the Indian financial market and led to a situation of liquidity tightening in the system, came into light following a series of defaults by its group companies beginning September 2018. The company's shares closed at Rs 3.87 apiece on the BSE, down 3.25 per cent as compared to the previous close.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)