NEW DELHI: Beleaguered by debt and defaults, Infrastructure Leasing & Financial Services (IL&FS) on Friday disclosed to stock exchanges that it has defaulted on yet another payment, even as the CEO & MD of its financial services unit quit.
“The company was unable to service its obligation in respect of LC (letter of credit) payment to IDBI Bank due yesterday which was non-banking day and hence payable today i.e. on September 21, 2018,” said IL&FS, which has already defaulted on at least two interest payments to its bondholders since August.
A separate notification by IL&FS Financial Services stated that its MD & CEO Ramesh Bawa has resigned with immediate effect. The past week has seen reports stating that the sprawling group would be selling this unit to scare up the much-needed liquidity.
Aditya Birla Finance, one of the creditors of IL&FS’ two project special purpose vehicles, has filed an arbitration application under Section 9 of the Indian Arbitration and Conciliation Act, 1996, before the Delhi High Court.