ILFS

About ILFS

Infrastructure Leasing and Financial Services, a major Indian infrastructure financing company, defaulted on its debt in 2018. ILFS had over 12 billion in debt. The defaults triggered panic in Indian debt markets. The government replaced the ILFS board and appointed a new chairman. Investigators found that ILFS had concealed its financial problems for years. The company had used complex group structures to hide losses. Credit rating agencies were criticized for maintaining AAA ratings on ILFS debt until the default. The ILFS crisis had systemic implications, as many mutual funds and insurance companies held ILFS debt. The resolution process involved asset sales and debt restructuring over several years. The case highlighted the risks in infrastructure financing and the failures of credit rating agencies in India.