Hong Kong and Shanghai Banking Corporation (HSBC) has filed a winding up petition in a Singapore court against an overseas subsidiary of IL&FS Transport Services Ltd (ITNL) for recovery of dues totalling more than ₹1,000 crore.

In the first such case against a group entity of crisis-hit Infrastructure Leasing and Financial Services Ltd (IL&FS) Group, HSBC is seeking to recover its funds parked in bonds worth RMB 1,000 million (more than ₹1,050 crore) maturing in 2021, which were issued by ITNL Offshore Pte Ltd.

According to a notice published in Singapore’s government gazette on Tuesday, HSBC filed an application on February 27 at the Singapore High Court for the winding up of ITNL Offshore Pte Ltd. The application has been listed for hearing on March 20.

When contacted, an IL&FS spokesperson said: “The company is engaging with bondholders and aims to arrive at an amicable solution to resolve their debt.”

After a huge crisis came to light due to outstanding debt of more than ₹90,000 crore at IL&FS, the government, in October 2018, seized control of the debt-trapped company, and superseded its board by appointing a new one led by Uday Kotak as chairman.

ITNL alone is said to account for outstanding debt totalling nearly ₹40,000 crore, while the company and many other subsidiaries of IL&FS have defaulted on several debt instruments due to insufficient funds.

The new board, as part of the overall resolution process for the IL&FS Group, has sold a number of assets to clear dues and debt.

ITNL and several other IL&FS entities are also facing multiple probes for alleged wrongdoings by the erstwhile management, while the role of auditors and credit rating agencies have also come under the scanner.

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