Business Standard

IL&FS looks to exit project financing: Business Standard


(Reuters) - Shareholders of Infrastructure Leasing & Financial Services Ltd (IL&FS) are considering a restructuring proposal to focus on the management and execution of infrastructure projects, and exit the financing of long-term projects, the Business Standard reported on Friday.
The report comes a day after the company's IL&FS Financial Services Ltd unit said it missed repayments on a host of bank loans and some term deposits due this month.
Some of IL&FS' assets will also be put up for sale to pare its debt, the paper said.
IL&FS, which is executing large projects like the Zojila tunnel in northern India, is moving towards engineering, procurement and construction contracts, sources told the paper.
IL&FS is a major Indian infrastructure finance and construction company, which has built up big debts and is now facing a credit crunch. As a result, Indian authorities are trying to calm market fears that IL&FS' troubles could trigger a crisis in the wider non-banking financial sector.
IL&FS did not immediately respond to a Reuters request for comment.
India's central bank is set to meet the large shareholders of IL&FS later on Friday, CNBC-TV18 reported on Thursday, citing sources familiar with the matter.
Top shareholders of IL&FS include India's largest state-run insurer, Life Insurance Corporation (LIC), Japan's Orix Corp, IL&FS Employees Welfare Trust and Abu Dhabi Investment Authority.
(Reporting by Tanvi Mehta in Bengaluru; Editing by Gopakumar Warrier)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Sep 28 2018 | 10:46 AM IST

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