IL&FS Engineering and Construction Company on Monday said it has defaulted on redemption of preference shares worth Rs 39.5 crore in favour of Vistra ITCL (India) Ltd. The company in a filing to the exchange said that due date of redemption was September 30.
"Due to the present circumstances in relation to the company...the company is unable to redeem the preference shares on the due date," IL&FS Engineering and Construction Company said in a filing to Bombay Stock Exchange.
Default on the redemption is with respect to non-convertible redeemable cumulative preference shares and optionally convertible preference shares.
The infra lending and engineering conglomerate major currently sits on a debt burden of nearly Rs 91,000 crore and has been downgraded to junk status by rating agencies following the default. Of this, Rs 57,000 crore are bank loans alone, most of which are from state-owned lenders.
The government has constituted a board under the chairmanship of Uday Kotak to resolve the financial crisis at the debt-ridden Infrastructure Leasing & Financial Services (IL&FS) group.
Ahead of the announcement, shares of IL&FS Engineering closed trade at Rs 3.87 apiece on the BSE, down 3.25 per cent as compared to the previous close.