IL&FS arm defaults on redemption of preference shares worth Rs39.5 crore in favour of Vistra ITCL (India) Ltd
Shares of IL&FS Engineering close at Rs3.87 apiece on the BSE, down 3.25%
MUMBAI :
IL&FS Engineering and Construction Company on Monday said it has defaulted on redemption of preference shares worth ₹39.5 crore in favour of Vistra ITCL (India) Ltd.
"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.