Mumbai: The debenture trustee of IL&FS bondholders is planning legal action against the company management amid signs of fading repayment chances.
Centbank Financial Services, which looks after investor interest, has sought bondholders’ consent to take legal action through a “Special Resolution” as it identified a total Rs 7,266 crore worth of defaults in the past six months with nearly three-fourths of the sum coming from the holding company.
The trustee has written letters to about 2,000 bondholders, including several standalone provident or retirement or Army funds, mutual funds and insurance companies such as GIC, Bharti Axa, New India Assurance and Oriental Insurance. Centbank has called for a meeting on April 16 to take a final call on the issue, a copy of which has been obtained by ET.
Email queries sent to Central Bank of India and Centbank Financial remained unanswered till the time of going to press, while individual investors couldn’t be contacted immediately.
Legal action against IL&FS
“…the Debenture Trustees are hereby authorised to take such steps, legal or otherwise, as may be necessary, expedient, relevant, supplemental and/or concerned for the recovery of all dues together,” it said in the letter.
Between September 17 last year and March 18 this year, IL&FS failed to repay Rs 5,160.50 crore, while IL&FS Financial could not repay Rs 2,105.5 crore during the same time, show data from the trustee’s letter.
“Centbank is seriously considering legal a ..
Centbank Financial Services, which looks after investor interest, has sought bondholders’ consent to take legal action through a “Special Resolution” as it identified a total Rs 7,266 crore worth of defaults in the past six months with nearly three-fourths of the sum coming from the holding company.
The trustee has written letters to about 2,000 bondholders, including several standalone provident or retirement or Army funds, mutual funds and insurance companies such as GIC, Bharti Axa, New India Assurance and Oriental Insurance. Centbank has called for a meeting on April 16 to take a final call on the issue, a copy of which has been obtained by ET.
Email queries sent to Central Bank of India and Centbank Financial remained unanswered till the time of going to press, while individual investors couldn’t be contacted immediately.
Legal action against IL&FS
“…the Debenture Trustees are hereby authorised to take such steps, legal or otherwise, as may be necessary, expedient, relevant, supplemental and/or concerned for the recovery of all dues together,” it said in the letter.
Between September 17 last year and March 18 this year, IL&FS failed to repay Rs 5,160.50 crore, while IL&FS Financial could not repay Rs 2,105.5 crore during the same time, show data from the trustee’s letter.
“Centbank is seriously considering legal a ..
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