INSUBCONTINENT EXCLUSIVE:
Mumbai: For the third time in a month, crippled infrastructure conglomerate ILFS Financial Services Monday defaulted on interest payments on
commercial papers.
The interest payment on the papers were due Monday, the company informed the exchanges.
The company said it will not be
able to access commercial papers market for up to six months from the date of repayment of this obligation.
The company did not quantify the
default amount.
"The commercial papers which were due on September 24, could not be serviced by the company," the company said in a BSE
filing.
Last Friday, its managing director and chief executive Ramesh C Bawa and some key board members had resigned amid crisis in the ILFS
group for alleged defaults in loan payments and corporate governance issues.
The infrastructure conglomerate has come under the scanner of
multiple regulators, including Sebi, for alleged defaults related to financial disclosures and corporate governance.
Earlier this month, it
came to light that ILFS group defaulted on a short-term loan of Rs 1,000 crore from Sidbi, while a subsidiary has also defaulted Rs 500
crore dues to the development finance institution.
While ILFS group has a consolidated debt of Rs 91,000 crore with ILFS alone having nearly
Rs 35,000 crore, ILFS Financial Services Rs 17,000 crore, which sits as standard asset for most of the lenders, according to a Nomura India
