Rare India Defaulter IL&FS Is Said to Be Delinquent on More Debt

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The Indian infrastructure finance firm behind a rare default last month that is reverberating through the nation’s credit markets is delinquent on more borrowings, people familiar with the matter said. Infrastructure Leasing & Financial Services Ltd., which helped fund India’s longest tunnel, is in default on 3 billion rupees ($41 million) of short-term borrowings taken through so-called inter-corporate deposits from Small Industries Development Bank of India, the people said. Government-backed SIDBI has sought a repayment plan, according to the people, who asked not to be identified because the details are private, Bloomberg News reported. The mounting troubles come after IL&FS missed payment on commercial paper last month in a rare development for India’s short-term debt market, fanning concerns among investors in the money-market funds that hold such securities. The Reserve Bank of India has initiated a special audit of the firm, BloombergQuint has reported. Read more.