IL&FS Transportation Networks defaults on dividend payment of Rs 7.12 crore

Debt-ridden IL&FS Transportation Networks, a wholly owned subsidiary of troubled IL&FS group, on Monday said that it has defaulted on dividend payment of Rs 7.12 crore to the preference shareholders due to insufficient funds.

"The dividend and the redemption amount due and payable on December 23, 2018 on the cumulative non-convertible redeemable preference shares was not paid to the preference shareholders due to insufficient funds," IL&FS Transportation Networks said in a filing to the Bombay Stock Exchange.

The dividend of Rs 7.12 crore was due for the period between April 1, 2017 to December 23, 2018, it informed the exchange.

Before this, the ill-fated company had defaulted on interest payments of Rs 3.98 crore on December 28, 2018.

Also Read: IL&FS Transportation defaults on interest payments of Rs 3.98 crore

The infra lending and engineering conglomerate major sits on a debt burden of nearly Rs 94,000 crore as of October 2018, and has been downgraded to junk status by rating agencies following the default.

Of this, nearly Rs 60,000 crore are bank loans alone, most of which are from state-owned lenders.

Also Read: IL&FS Investment Managers' board appoints two nominee directors

The government has constituted a board under the chairmanship of Uday Kotak to resolve the financial crisis at the debt-ridden Infrastructure Leasing & Financial Services (IL&FS) group. On October 1, government superseded the board of IL&FS and appointed a six-member board with Kotak as the non-executive chairman.

Meanwhile, shares of IL&FS Transportation Networks were trading 0.56 per cent higher at Rs 12.67 apiece, against previous closing price of Rs 12.60 on the Bombay Stock Exchange.

Edited by Chitranjan Kumar