Not just in India, IL&FS is facing financial troubles outside the country as well with nearly 25 of its 53 foreign arms have booked losses for FY18, according to its latest annual report.
IL&FS debt: Not just in India, IL&FS is facing financial troubles outside country as well with nearly 25 of its 53 foreign arms have booked losses for FY18, according to its latest annual report. About 32 foreign subsidiaries of the group which are spread from Colombia, Brazil, Mexico, Spain, Portugal, Albania, Nigeria, Singapore, Vietnam and Philippines don’t hold adequate amount of assets to cover their borrowings.
Nearly 75 Indian subsidiaries of the IL&FS have recorded losses during the same period, report said. The infrastructure financing firm has currently been facing financial crisis and has defaulted on debt repayments. The IL&FS group has liabilities of over Rs 91,000 crore.
Nearly, 82 Indian subsidiaries of IL&FS lack enough assets to cover borrowings or total liabilities, the report added. A few of these subsidiaries include IL&FS Transportation Networks Ltd, IL&FS Energy Development Company Ltd and IL& FS Financial Service Ltd.
IL&FS Tamil Nadu Power Company Ltd posted the biggest loss of Rs 3,821.15 million, followed by IL&FS Maritime Infrastructure Company Ltd at Rs 3,171.91 million and Rapid MetroRail Gurgaon South Ltd at Rs 2,432.88 million.
Earlier in September this year, IL&FS Tamil Nadu Power Company was taken to NCLT by a few of its lenders after its defaulted on debt payments.
IL&FS moves NCLT
On Tuesday, IL&FS and its subsidiaries have moved NCLT seeking ‘certain reliefs’ in relation with filing of a scheme of arrangement under Section 230 of the Companies Act.
“We hereby inform that IL&FS has filed an application with the National Company Law Tribunal on September 24, 2018 seeking certain reliefs in connection with filing of a scheme of arrangement under Section 230 of the Companies Act, 2013 in respect of IL&FS and certain subsidiaries, joint ventures, associate of the company which scheme will be prepared in compliance with applicable law and subject to necessary consents of the shareholders, creditors, regulators and the board of directors of the respective entities,” IL&FS Transportation Networks said in a stock exchange filing.