The infrastructure major IL&FS, which has landed in an unprecedented financial crisis, in order to avert it to a degree and possibly avoid its bankruptcy has appointed SBI Capital to find a majority stake investor in company's wholly owned financial services firm IL&FS Financial Services.
It has even done so to pay off lingering huge debt. Nonetheless, the crisis-ridden company is seeking the government to pay its outstanding dues for the different projects it had completed worth as much as Rs. 16,000 crore.
The lender has missed out several repayment obligations and as a result in the week passed by it faced a series of rating downgrades to levels as low as 'D' in respect of different financial instruments which includes NCDs etc.
Some of the different factors cited for the current situation at the lender include disputes in relation to contracts, delayed approvals for projects as well as rising interest rate scenario.
In all the IL&FS is considering sale of assets including its financial arm worth Rs. 4500 crore to tide over the current liquidity crunch.