October 30, 2018 / 9:15 AM / 21 days ago

Indian government examines outright sale of IL&FS - ET Now, citing news agency sources

FILE PHOTO: A bird flies next to the logo of IL&FS (Infrastructure Leasing and Financial Services Ltd.) installed on the facade of a building at its headquarters in Mumbai, India, September 25, 2018. REUTERS/Francis Mascarenhas/File photo

MUMBAI (Reuters) - The Indian government is examining a complete sale of debt-laden Infrastructure Leasing and Financial Service Ltd (IL&FS), as one of the options to solve the crisis at the beleaguered firm, television channel ET Now reported, citing news agency sources.

A major Indian infrastructure financing and development company, IL&FS roiled the nation’s financial markets in recent weeks when it defaulted on payments to banks, and ratings agencies downgraded its loans to junk from investment grade.

Its troubles stoked fears of a bigger malaise in India’s shadow banking sector.

The new board at IL&FS, which was chosen by the government and appointed by a court-led process at the start of October, is expected to present its resolution plan to a company law tribunal on Wednesday, ET Now said citing the agency sources.

IL&FS declined to comment.

State-owned firms led by Life Insurance Corp of India own nearly 40 percent of the company.

Reporting by Promit Mukherjee; Edited by Martin Howell

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