Active Stocks
Mon Apr 22 2024 15:57:16
  1. Tata Steel share price
  2. 161.85 -0.15%
  1. HDFC Bank share price
  2. 1,512.30 -1.24%
  1. State Bank Of India share price
  2. 765.85 2.00%
  1. ICICI Bank share price
  2. 1,087.00 1.93%
  1. Wipro share price
  2. 461.95 2.01%
Business News/ Companies / News/  IL&FS misses more debt payments
BackBack

IL&FS misses more debt payments

IL&FS fails to service principal and interest on loans from banks, inter-corporate deposit and commercial papers totaling ₹33.9 crore due for the period from 30 September to 4 October

The government earlier this week seized control of IL&FS, which has total debt of $12.6 billion, ousting the erstwhile board of directors. Photo: MintPremium
The government earlier this week seized control of IL&FS, which has total debt of $12.6 billion, ousting the erstwhile board of directors. Photo: Mint

Mumbai/Singapore: Infrastructure Leasing & Financial Services Ltd. (IL&FS) is missing more debt obligations, even as the Indian government pledged to prevent further defaults, underscoring the challenges its new board faces in fixing the firm’s mounting debt problems.

IL&FS failed to service principal and interest on loans from banks, inter-corporate deposit and commercial papers totaling 33.9 crore due for the period from 30 September to 4 October, it said in an exchange filing.

Also read: IL&FS crisis a concern for investors abroad: Mobius

The government earlier this week seized control of the conglomerate, which has total debt of $12.6 billion, ousting the erstwhile board of directors.

“This amount is peanuts in the big picture, that’s how bad the situation is at the group," said Rajiv Kochhar, chief executive officer of Avista Advisory Partners in Singapore. “There is a huge mismatch in cash flows and people now have to manage their expectations in terms of the recovery prospect."

The newly-constituted board of directors for the troubled Indian lender met Thursday and undertook an initial assessment of the firm. They face an uphill task in restoring confidence in the group, whose downfall has led to a selloff in equities and bonds. IL&FS’s default has also prompted risks of an investor stampede out of mutual funds that hold its securities. Getting fresh cash infusions would be crucial for the group that’s defaulted on its obligations since June, prompting rating cuts to junk.

The new board at IL&FS has been tasked with preparing a plan for the group and filing a response with the National Company Law Tribunal, the nation’s insolvency court, by 15 October.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 05 Oct 2018, 01:04 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App