Troubled IL&FS Group said Friday the board of Elsamex SA of Spain have unanimously agreed for initiation of voluntary insolvency proceedings in Spain in view of lack of liquidity.
IL&FS arm IL&FS Transportation Networks (ITNL) had acquired Elsamex SA of Spain, a road maintenance, operation and management company.
"The Board of Directors of Elsamex SAU, Spain, a material subsidiary of IL&FS Transportation Networks Ltd, has conducted a detailed analysis of the evolution of Elsamex, the financial risks, the lack of liquidity to meet the due dates and the latest court resolutions.
"Pursuant to the aforementioned analysis, the Board of Directors of Elsamex have unanimously agreed for initiation of voluntary insolvency proceedings in Spain," IL&FS Transportation said in a BSE filing.
The company is part of the crisis-hit IL&FS group which has defaulted on debt repayments due to financial mismanagement. The total debt of the group was pegged at Rs 94,215.6 crore as of October 8.
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