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Updated: July 07, 2025 15:43
IL&FS Engineering and Construction Company Ltd has disclosed a default of ₹26.28 billion on its outstanding borrowings as of June 30, 2025. The default spans loans and revolving credit facilities from multiple banks and financial institutions, raising fresh concerns over the company’s financial viability and recovery prospects.
Key Highlights and Financial Breakdown:
The total defaulted amount of ₹26.28 billion includes both principal and interest components, with no repayments made since the original default trigger date of October 15, 2018.
The company’s total financial indebtedness, including short- and long-term debt, stands at approximately ₹30.97 billion.
Lenders impacted include Indian Bank, Bank of India, ICICI Bank, IDBI Bank, Punjab National Bank, and State Bank of India, among others.
No interest has been accrued post the cut-off date, except for Funded Interest Term Loans, in line with National Company Law Appellate Tribunal (NCLAT) directions.
Operational and Legal Context:
IL&FS Engineering remains under the broader IL&FS Group resolution framework, which has been overseen by a government-appointed board since the group’s financial collapse in 2018.
The company has not issued any new repayment plan or restructuring update as of the latest filing.
Its shares have shown marginal volatility, closing 2% higher at ₹38 on July 7, despite the default disclosure.
Conclusion: The ₹26.28 billion default underscores the lingering financial distress within IL&FS Engineering. With no fresh resolution roadmap in sight, stakeholders remain cautious as the company navigates regulatory oversight and creditor negotiations.
Sources: Economic Times, IL&FS Engineering Regulatory Filings, Moneylife, BSE Announcements, SEBI Disclosures
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