 "IL&FS, Infrastructure Leasing and Financial Services, Mumbai")
IL&FS SPV fallout hurts market
A lot of microfinance institutions looking to securitise their loans are finding it difficult to proceed after the Infrastructure Leasing & Financial Services (IL&FS) crisis. Their structure is similar to the special purpose vehicle (SPV) approach that defaulting lender IL&FS followed. The IL&FS subsidiaries have decided to not pay their obligations, citing a National Company Law Appellate Tribunal decision on resolving the debt issue at the parent level. The structure was supposed to ring-fence such entities from their parent's troubles. The hit is said to have resulted in a slowdown for others too. It is likely
