IL&FS contagion risk led the markets to see worst volatility in four year's time in last week's Friday session and to not let the infrastructure major land into bankruptcy situation lenders as well as shareholders are out for help.
The company has made a series of repayment defaults and in its relation has face several credit rating downgrades to low of D within a span of just 2 months. And now to rescue beleaguered lenders are working out ways such that which assets can be liquidated to meet different repayment obligations. At the same time, it has come to light that NHAI or National Highways Authority of India is due to offer Rs. 700 crore to the company.
On Monday, the company informed that it was not able to service obligations due in respect of CP. Also, repayments due in case of NCDs that fall due on Monday were also not payable by the company. Additionally, the company was to make payments to LIC Mutual Funds and 5 other payments to Principal Mutual Fund totaling to Rs. 73.97 crore.
As per sources, the road development arm of IL&FS, ITNL, has asked for an amount equaling to Rs. 700 crore for a road project undertaken in the state of Maharashtra.
Govt. to assure the company does not go bankrupt has asked NHAI to clear the dues at the earliest. And as per a NHAI official quoted as saying in one of the leading daily report, "We are not waiting for any direction from the government, we are keen that all our contractors do well".