 "RBI to meet large shareholders of IL&FS on Friday, discuss turnaround plan")
The Reserve Bank will meet the large shareholders of Infrastructure Leasing & Finance Services on Friday to discuss a turnaround plan for the crisis-ridden infra major, the central bank sources said.
LIC and Orix Corporation of Japan, which have 25.34 and 23.54 per cent stake in the company, respectively, are expected to attend the meeting to which minority shareholders, which include two state-run banks, and HDFC have not been called.
"The officials concerned will meet the large shareholders of IL&FS Friday," an RBI source told PTI. Earlier in the day, two banking sources said they have been told that Friday's meeting has been cancelled.
"Friday's meeting has been cancelled as the regulator want to know what is the course of action and what is the roadmap that the firm is taking," one of the shareholders, said.
The Abu Dhabi Investment Authority, HDFC, Central Bank of India and SBI hold 12.56 per cent, 9.02 per cent, 7.67 per cent and 6.42 per cent, respectively in IL&FS which collectively owe over Rs 91,000 crore to lenders.
Meanwhile, IL&FS's annual general meeting is scheduled for September 29.
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The IL&FS Group is facing serious liquidity crisis and has defaulted on interest payment on various debt repayments since August 27. It has over Rs 910 billion in debt.
The company needs an immediate capital infusion of Rs 30 billion and is planning a Rs 45-billion rights issue.
At a meeting held earlier this month, the key shareholders of the debt-ridden company, including LIC, SBI and HDFC, had kept a pre-condition for it to raise funds through its assets or non-core businesses, before any additional money could be pumped in.
There have been reports that IL&FS has even put on block its headquarters in the city for around Rs 13 billion.
On September 4, it came to light that IL&FS had defaulted on a short-term loan of Rs 10 billion from Sidbi, while its subsidiary has also defaulted Rs 5 billion dues to the development finance institution.
On Monday, IL&FS Financial Services also defaulted on repayment of commercial papers due that day.