IL&FS Engineering And Construction Defaults On Redemption Of Preference Shares
Road construction takes place near the IL&FS building, one of India’s leading infrastructure-development and finance companies, in Mumbai, India. (Photographer: Abhijit Bhatlekar/Bloomberg News)

IL&FS Engineering And Construction Defaults On Redemption Of Preference Shares

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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 due date of redemption was Sept. 30.

“Due to the present circumstances in relation to the company...the company is unable to redeem the preference shares on the due date,” it said in a filing to stock exchanges.

Default on the redemption is with respect of non-convertible redeemable cumulative preference shares and optionally convertible preference shares.

The debt crisis at the infrastructure lender IL&FS, which created a turmoil in the Indian financial market and led to a situation of liquidity tightening in the system, came into light following a series of defaults by its group companies beginning September 2018.

The company’s shares closed at Rs 3.87 apiece on the BSE, down 3.25 percent as compared to the previous close.

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