India's IL&FS looks to exit project financing - Business Standard

IL&FS Engineering and Construction

28/09/2018 04:44

Sept 28 (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 https://www.business-standard.com/article/companies/crisis-hit-il-fs-looks-to-exit-long-term-project-financing-business-118092800035_1.html
 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.  urn:newsml:reuters.com:*:nL4N1WD503
    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 8591.T , IL&FS Employees Welfare Trust and Abu Dhabi
Investment Authority.

 (Reporting by Tanvi Mehta in Bengaluru; Editing by Gopakumar
Warrier)
 ((tanvi.mehta@thomsonreuters.com; +91 80 67494756 ; Reuters
Messaging: tanvi.mehta.thomsonreuters.com@reuters.net))