RBI Top Officials Meet Two Largest IL&FS Shareholders On Revival Plans
MUMBAI: The Reserve Bank of India (RBI) Friday met the large shareholders of debt-laden Infrastructure Leasing & Finance Services (IL&FS) to decide on revival and capital infusion plans for the company, sources said. Deputy governors NS Vishwanathan and MK Jain have met the representatives of LIC and Orix Corporation of Japan, the two largest shareholders which own 25.34 and 23.54 per cent stake in the company, respectively, sources said, but refused to share the contours of the meeting. The Abu Dhabi Investment Authority, HDFC, Central Bank of India and SBI hold 12.56 per cent, 9.02 per cent, 7.67 percent and 6.42 per cent, respectively in the cash-strapped company.  Â
The RBI had earlier called all the shareholders of the group for the meeting, but later whittled it down to two of the large shareholders.  Â
The IL&FS group is facing serious liquidity crisis and has defaulted on interest payment on various debt repayments since August 27. It has over Rs 91,000 crore in debt at the consolidated level. The company needs an immediate capital infusion of Rs 3,000 crore and is planning a Rs 4,500-crore rights issue.  Â
On Thursday, IL&FS Financial Services defaulted on bank loans, including interest of Rs 284.5 crore to five banks. The company also said it defaulted on repayments of Rs 103.53 crore of term deposit and Rs 52.43 crore of short term deposit.  Â
On September 24 and 26, IL&FS Financial Services had defaulted on repayment of commercial papers due on the respective days.  Â
At a meeting held earlier this month, the key shareholders of the debt-ridden company, including LIC, SBI and HDFC, had kept a pre-condition for it to raise funds through its assets or non-core businesses, before any additional money could be pumped in.  Â
There have been reports that IL&FS has even put on block its headquarters in the city for around Rs 1,300 crore. On September 4, it came to light that IL&FS had defaulted on a short-term loan of Rs 1,000 crore from Sidbi, while its subsidiary has also defaulted Rs 500 crore dues to the development finance institution.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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