IL&FS plans rights issue, sell assets to clear dues
Mumbai : Cash-strapped Infrastructure Financing and Leasing Services (IL&FS) Ltd on Saturday said it is planning to have a "successful" rights issue and would sell its assets to repay its creditors.
The company in its Annual General Meeting on Saturday sought shareholders' permission to carry out its plans to recapitalise itself.
In a video shared by the company after the AGM, IL&FS MD Hari Sankaran said that the company addressed the concerns of shareholders to restore normalcy in its operations and proposed a three-point strategy.
"Number one, to have a successful rights issue which will generate and enable the company to recapitalise itself," he said, adding that the company also proposes to sell assets in order to repay its creditors.
The third element of the strategy is "to get liquid allocation to support repayments of debtors till our assets sale begins", he said.
IL&FS Financial Services, a group company, defaulted in payment obligations of bank loans (including interest), term and short-term deposits and failed to meet the commercial paper (CP) redemption obligations due on September 14, 2018.
Furthermore, on September 15, 2018, the company reported that it had received notices for delays and defaults in servicing some of the inter corporate deposits accepted by it.
IL&FS Ltd is a core investment company and serves as the holding company of the IL&FS Group, with most business operations domiciled in separate companies which form an ecosystem of expertise across infrastructure, finance and social and environmental services.