IL&FS secures lifeline as shareholders approve fundraising via debt, equity

IL&FS has appointed Alvarez & Marsal to devise a restructuring plan that will be implemented upon approval by the board and stakeholders

Troubled Indian shadow bank Infrastructure Leasing & Financial Services Ltd, whose recent debt defaults sparked concern about contagion in the nation's financial markets, secured a lifeline after shareholders approved its plans to raise money through debt and equity. 

Stockholders green-lit IL&FS' plans to raise as much as Rs 150 billion ($2.1 billion) through a non-convertible debt issue, hike the firm's borrowing limit by 40 per cent to Rs 350 billion and increase its share capital to enable a rights offering, the company said in a filing.

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