Global banking giant 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 Rs 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 (over Rs 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 March 3, HSBC filed its application for winding up of ITNL Offshore Pte Ltd in Singapore High Court on February 27.
The application has been listed for hearing on March 20 and “any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose”, the notice said.
When contacted, an IL&FS spokesperson told PTI, “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 because of an outstanding debt of over Rs 90,000 crore at IL&FS, the government in October 2018 seized control of the debt-trapped company and superseded its board.
