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

IL&FS Transportation, a wholly owned subsidiary of debt-ridden IL&FS group, said on Friday it has defaulted on interest payment of Rs 3.98 crore on two non-convertible debentures (NCDs).

The company in a filing to the exchange said that the interest payment on both NCDs were due on December 28.

"The interest due and payable on December 28, 2018 on the NCDs bearing ISIN INE975G07050 and INE975G07068 was not paid to the debenture holders due to insufficient funds," IL&FS Transportation said in a filing to the Bombay Stock Exchange.

Both the 91-day bonds were issued on September 28, the company said in the exchange filing.

Before this, the cash-starved company had defaulted on interest payments worth Rs 2.28 crore on NCDs, payable on November 26, Rs 7.24 crore due on November 21 and Rs 2.29 crore maturing on November 2.

Also Read: IL&FS board plans to cut 65% jobs to rescue ailing group

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 On October 1, government superseded the board of IL&FS and appointed a six-member board with Kotak as the non-executive chairman.

The infra lending and engineering conglomerate major currently sits on a debt burden of nearly Rs 91,000 crore and has been downgraded to junk status by rating agencies following the default.

Of this, Rs 57,000 crore are bank loans alone, most of which are from state-owned lenders.

A spate of debt defaults started emanating from its various group companies from September, followed by resignations of its Managing Director & Chief Executive Officer Ramesh C Bawa as well as several independent board members.

Ahead of the announcement, shares of the company closed trade at Rs 14.55, down 4.90 per cent, on the BSE.

Edited by Chitranjan Kumar