INSUBCONTINENT EXCLUSIVE:
The debt laden Infrastructure Leasing and Financial Services today passed a resolution to raise capital through rights issue, approach
National Company Law Tribunal for asset sale resolution and get liquidity to repay debtors
laid out elements of our strategy in three parts
One, to have successful rights issue which will generate and enable the company to recapitalize itself
Two, to sell assets which they have built over the last few decades in order to ensure that the value can be upstreamed and used to repay
Three, should be able to get liquidity to repay our debtors till asset sale cycle begins
resolution to increase capital was passed after a lot of discussion while no one committing to subscribing to it
No one committed to participate but the process will be concluded by October
ILFS is looking to raise up to Rs 16,000 crore from selling assets of the transport business ILFS Transportation Networks
It has identified 14 assets, including the headquarters to divest and raise funds
The Reserve Bank of India met up with large shareholders
of ILFS and asked them to ensure arrest of defaults.
With total debt of Rs 91,000 crore, the company has defaulted on five bank loans, one
deposit and one shot term deposit between September 12 and September 27
The holding company with over 150 subsidiaries have defaulted on repayment of commercial papers, leading to the debt downgrade to below
investment grade and restrictions on tapping the money market for funds
7 crore investment in the company
