ILFS is on the radar of enforcement directorate after the agency raided its past Chairman Ravi Parthsarathy.Out of Rs 91,000 crore of outstanding loans, a number of subsidiaries of the company seem to be in the red and unable to repay loans of at least Rs 65,000 crore, according to a recent assessment presented before the NCLT. A major part of the investments made by provident funds also in the risk category and would be considered for repayment after meeting obligations towards secured creditors.
These PF and provident funds trusts are worried that if payment is limited to secured creditors, then only financial creditors like banks will receive the dues while unsecured bond-holders will be get any payments.
IL&FS bonds attracted investments by PF trusts as it had the shareholding of SBI and LIC, which gave the bondholders a comfort factor
