IL&FS withdraws declaration for seeking shareholders' nod for dividend

Informs shareholders that the debenture trustee has denied consent to dividend distribution following its default on NCD interest payment

Debt-laden infrastructure financier Infrastructure Leasing & Financial Services (IL&FS) on Thursday said it had withdrawn a declaration seeking members’ approval for the dividend.

In its corrigendum to notice of an annual general meeting and annual report for 2017-18, filed with the listing department of BSE, the company told its shareholders that “the debenture trustee vide its letter dated September 24, 2018, has not consented to the declaration and payment of dividend on equity shares.”

IL&FS explained that it had defaulted on its payment of interest on non-convertible debentures (NCDs). And, pursuant to one of the covenants of the debenture trust deed, it was required to obtain prior consent of the debenture trustee, Centbank Financial Service Ltd, for declaration and distribution of dividend on equity shares.