Defaulting Shadow Lender Faces India Insolvency Filing
- Move is blow to regulators’ efforts to calm financial markets
- IL&FS group with $12.6 billion of debt has missed repayments
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A creditor is seeking to push India’s troubled Infrastructure Leasing & Financial Services Ltd. into insolvency, risking regulators’ efforts to calm financial markets and the group’s attempts to independently restructure its borrowings.
Small Industries Development Bank of India on Tuesday filed an insolvency application against IL&FS and its unit at the National Company Law Tribunal in Mumbai, people familiar with the matter said. Separately, IL&FS’s biggest shareholder, Life Insurance Corp. of India, won’t rule out raising its stake in the beleaguered company, LIC Chairman V.K. Sharma said.