Representational image
In a fresh hit for the lending major IL&FS, Hongkong and Shanghai Banking Corporation (HSBC) has issued a notice to the former's arm ITNL Offshore Private Ltd asking it to pay 1 billion Chinese Yuan ($145 million).
A trust deed was signed by ITNL Offshore, IL&FS Transportation (ITNL) as the guarantor and HSBC as a security trustee in January 2018.
In a regulatory filing, IL&FS Transportation said: "HSBC has issued notice dated June 19, 2019 to the issuer (ITNL Offshore) with a copy to the company (ITNL) that the RMB 1,000,000,000 7.50 per cent Guaranteed Notes due 2021 have become due and payable at their principal amount together with accrued interest to the date of payment.
Implying its inability of paying back the amount, ITNL said that HSBC may act against the the company and ITNL Offshore as per the clauses in the trust deed.
"As per the the notice and conditions stipulated in the trust deed, HSBC may, at its discretion and without further notice, institute such proceeding against the issuer and/the company (as the guarantor) to enforce the terms of the trust deed and,or notes and/or security documents thereto (as the case may be)," it said.
The liquidity crisis in Infrastructure Leasing & Financial Services Limited (IL&FS) and its group companies including ITNL came to light when IL&FS first defaulted on a commercial paper in September last year, which have raised questions on the actual liquidity status of the country's NBFC sector.
Following the incident, the group and its erstwhile management has been under the scanner of investigative agencies and an interim IL&FS board has been installed headed by Uday Kotak and the matter is in the National Company Law Appellate Tribunal.
More and more rot has been unearthed as audit firms and credit rating agencies too have been found veiling the crisis in the lending major.
ALSO READ | Google says fighting fake business profiles on Maps
ALSO READ | GST Council Meeting: Single return for all businesses from January 1, 2020
