IL&FS Engineering defaults on bond payments

MUMBAI: Infrastructure company IL&FS’ Hyderabad-based unit IL&FS Engineering has defaulted on payments on its two tranche of bonds to investors, setting off worries that the pain of infrastructure builders is not over yet and there may be more losses for investors.

The company has informed investors that it had defaulted on redemption of optionally convertible cumulative redeemable preference shares which were due on September 2016.

“The company has defaulted in redemption of 5,000,000 6% Optionally Convertible Cumulative Redeemable Preference Shares and 300,000 6% Cumulative Redeemable Preference Shares which were due for redemption on September 30, 2016,” it said, and has requested preference shareholders to sanction a curing period of six months for redemption of these shares.



The company now plans to raise Rs 500 crore via QIP/rights issue in the next six months, and will use a portion of these proceeds to repay investors.