Secured lenders reject IL&FS’ Jammu tunnel debt recast plan

Secured lenders led by State Bank of India rejected a debt recast plan submitted by IL&FS for a project it undertook in Jammu & Kashmir to build India’s longest tunnel, said three people aware about the development. Secured lenders claim that the distribution of cash as proposed under the plan was unfair and that it was skewed in favour of unsecured creditors and lenders within the IL&FS Group, they said.