Indian gov't examines outright sale of IL&FS - ET Now, citing news agency sources

IL&FS Engineering and Construction

30/10/2018 09:10

MUMBAI, Oct 30 (Reuters) - The Indian government is
examining a complete sale of debt-laden Infrastructure Leasing
and Financial Service Ltd (IL&FS), as one of the options to
solve the crisis at the beleaguered firm, television channel ET
Now reported, citing news agency sources.
    A major Indian infrastructure financing and development
company, IL&FS roiled the nation's financial markets in recent
weeks when it defaulted on payments to banks, and ratings
agencies downgraded its loans to junk from investment grade.
    Its troubles stoked fears of a bigger malaise in India's
shadow banking sector.
    The new board at IL&FS, which was chosen by the government
and appointed by a court-led process at the start of October, is
expected to present its resolution plan to a company law
tribunal on Wednesday, ET Now said citing the agency sources.
    IL&FS declined to comment.
    State-owned firms led by Life Insurance Corp of India own
nearly 40 percent of the company.


 (Reporting by Promit Mukherjee
Edited by Martin Howell)
 ((promit.mukherjee@thomsonreuters.com; +91-22-6180-7516;
Reuters Messaging:
promit.mukherjee.thomsonreuters.com@reuters.net))