IL&FS approves Siva Shelters's proposal to restructure loan to subsidiary

Siva Shelters offers to pay 20% of settlement amount immediately on signing of agreement

IL&FS has approved a one time-debt restructuring proposal by Siva Shelters and Construction (SSCL), which offered to pay Rs 70 crore of its dues worth Rs 76.8 crore. SSCL’s offer is subject to the National Company Law Tribunal’s approval.

IFIN, a subsidiary of IL&FS, the bankrupt infrastructure financing and construction company, had disbursed Rs 50 crore as loan to SSCL. The loan—part of a sanctioned Rs 175 crore--was secured by way of an exclusive registered mortgage over approximately 17 acres of land parcels in Chennai. The loan was classified as a non-performing asset (NPA) on May 30, 2019.

A spokesperson