Infrastructure Leasing & Financial Services (IL&FS), for the second consecutive day, on Tuesday said it has defaulted on two repayments of short-term deposits, including interest of Rs 57.29 crore, taking the total amount in defaults till date to Rs 4,640.95 crore.
Infrastructure Leasing & Financial Services (IL&FS), for the second consecutive day, on Tuesday said it has defaulted on two repayments of short-term deposits, including interest of Rs 57.29 crore, taking the total amount in defaults till date to Rs 4,640.95 crore. IL&FS said its financial services arm, IL&FS Financal Services, was unable to repay Rs 5.34 crore on November 16 as well as Rs 51.95 crore on November 19. Prior to this, IL&FS on Monday said it defaulted on principal and interest of over Rs 307 crore with respect to deposits from MUDRA (Micro Units Development & Refinance Agency) due on November 17.
Last week, the company said it defaulted on a repayment of Rs 31 lakh due on November 8. Its subsidiary, IL&FS Energy Development Company also said it defaulted on interest repayments of Rs 4.66 crore on non-convertible debentures (NCD). The interest repayments were due starting August 15 till November 14. IL&FS and its numerous subsidiaries have defaulted on multiple repayments so far. On October 23, the company, in an exchange filing, said it defaulted on Rs 348 crore of debt that was due in three separate repayments on October 19, 20 and 22, taking the total amount in missed repayments at that time to Rs 4,272 crore.
According to data compiled by Prime Database and Value Research, IL&FS has a repayment of Rs 141 crore coming up on November 27 to Tata Mutual Fund. It also needs to pay a total of Rs 185 crore in December on bonds and NCDs. Between now and March 2019, IL&FS needs to repay slightly over Rs 1,500 crore in NCDs, bonds and commercial paper.
Meanwhile, lenders to IL&FS have opposed the 90-day moratorium sought by the ministry of corporate affairs (MCA) on creditor proceedings for loans taken by the company and its subsidiaries. Last week, in a hearing at the National Company Law Appellate Tribunal (NCLAT), lenders asked the appellate tribunal to also allow them not to classify IL&FS account as a non-performing asset (NPA) in case of non-payment.
The government has sought the moratorium to help a resolution plan take shape so that IL&FS can pay off its debts. The next hearing on the issue is set for December 17.
On October 31, the Uday Kotak-led board proposed a three-pronged strategy to revive IL&FS. The strategy includes capital infusion at the group level, sale of subsidiaries at the vertical level, and resolution at the asset level.