INSUBCONTINENT EXCLUSIVE:
Services (ILFS) on Friday, according to banking sources.The central bank had called a meeting with key shareholders of ILFS, including Life
Insurance Corporation of India (LIC) and State Bank of India, after the company and its subsidiaries defaulted on repayments of various debt
instruments."Tomorrow's meeting has been cancelled
As a regulator, they want to know what is the course of action and what is the road map that the firm is taking," a source said."RBI wants
details of the plan for future or corrective action which are to be taken," another source said.The next date for meeting has not been
decided yet, the source added
ILFS's annual general meeting is scheduled for September 29 here.LIC and Orix Corporation of Japan are the largest shareholders of ILFS
with 25.34 and 23.54 per cent stake, respectively
Abu Dhabi Investment Authority, HDFC,Central Bank of India and SBI hold 12.56 per cent, 9.02 per cent, 7.67 per cent and 6.42 per cent,
respectively.ILFS group is facing serious liquidity crisis and has defaulted on interest payment on various debt repayments since August
27.It has over Rs 91,000 crore in debt
The company needs an immediate capital infusion of Rs 3,000 crore and is planning a Rs 4,500-crore rights issue.At a meeting held earlier
this month, the key shareholders of the debt-ridden company, including LIC, SBI and HDFC, had kept a pre-condition for it to raise funds
through its assets or non-core businesses, before any additional money could be pumped in.There have been reports that ILFS has even put on
block its headquarters in the city for around Rs 1,300 crore.On September 4, it came to light that ILFS had defaulted on a short-term loan
of Rs 1,000 crore from Sidbi while its subsidiary also defaulted Rs 500 crore dues to the development finance institution.On Monday, ILFS
Financial Services also defaulted on repayment of commercial papers due that day.
