September 28, 2018 / 3:49 AM / 24 days ago

India's IL&FS looks to exit project financing - Business Standard

Sept 28 (Reuters) - Shareholders of Infrastructure Leasing & Financial Services Ltd (IL&FS) are considering a restructuring proposal to focus on the management and execution of infrastructure projects, and exit the financing of long-term projects, the Business Standard reported here on Friday.

The report comes a day after the company’s IL&FS Financial Services Ltd unit said it missed repayments on a host of bank loans and some term deposits due this month.

Some of IL&FS’ assets will also be put up for sale to pare its debt, the paper said.

IL&FS, which is executing large projects like the Zojila tunnel in northern India, is moving towards engineering, procurement and construction contracts, sources told the paper.

IL&FS is a major Indian infrastructure finance and construction company, which has built up big debts and is now facing a credit crunch. As a result, Indian authorities are trying to calm market fears that IL&FS’ troubles could trigger a crisis in the wider non-banking financial sector.

IL&FS did not immediately respond to a Reuters request for comment.

India’s central bank is set to meet the large shareholders of IL&FS later on Friday, CNBC-TV18 reported on Thursday, citing sources familiar with the matter.

Top shareholders of IL&FS include India’s largest state-run insurer, Life Insurance Corporation (LIC), Japan’s Orix Corp, IL&FS Employees Welfare Trust and Abu Dhabi Investment Authority. (Reporting by Tanvi Mehta in Bengaluru; Editing by Gopakumar Warrier)

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