Debt-Ridden IL&FS Banks On Rights Issue To Clear Dues: 10 Points

Debt-Ridden IL&FS Banks On Rights Issue To Clear Dues: 10 Points

IL&FS has a debt burden of over Rs 90,000 crore.

Revealing a three-part strategy, debt-hit Infrastructure Leasing & Finance Services (IL&FS) said on Saturday that it needs to have a successful rights issue to recapitalise itself. In August, IL&FS’s board approved a Rs 4,500-crore rights issue and a Rs 3,000-crore debt-reduction plan through asset sales. IL&FS is planning to arrange “liquid allocation to support repayment” till the asset sales cycle begins, said IL&FS Vice Chairman & Managing Director Hari Sankaran said at the annual general meeting (AGM). The three-part strategy of IL&FS includes a successful rights issue, ensuring liquidity remains to repay debtors till assets are sold and the selling of assets to pay back creditors, Mr Sankaran said at the AGM, which was attended by more than two dozen shareholders in Mumbai.

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