IL&FS group, which has already missed repayments in excess of Rs 5,000 crore, went further down the slippery slope on Wednesdsay with group company IL&FS Financial Services (IFIN) saying it has defaulted on repayments towards interest on term loans and short term loans of Rs 52 crore and interest on external commercial borrowings (ECB) amounting to Rs 2.19 crore.
Both the repayments were due on January 1, IFIN informed the Bombay Stock Exchange (BSE) on Wednesday.
This is the first time IL&FS has informed the exchange of a default in external borrowings.
While there is a stay on any legal action that can be taken by creditors against IL&FS in India, it is unclear how the group’s new government-appointed board will deal with a lawsuit that may be potentially filed overseas.
The National Company Law Appellate Tribunal, in October, granted IL&FS interim relief by granting a moratorium on actions by creditors, as the Uday Kotak-led board of directors of IL&FS attempts to evaluate and prepare a resolution plan.
As of November 30, according to information submitted to the exchange, IL&FS had missed total repayments amounting to Rs 5,155.45 crore.
IL&FS and its numerous subsidiaries have missed multiple repayments so far. Between now and March 2019, IL&FS needs to repay slightly over Rs 1,500 crore in convertible debentures, bonds and commercial paper. —FE