L&T Finance, a non-banking finance company, said it has exited from the bill of exchange (BOE)-backed loan arrangement with IL&FS related road and construction subsidiaries and vendors.

The finance company said, "L&T Finance has nil exposure to IL&FS vendors through bill discounting products, having exited completely with 100% recovery of all dues, under the mentioned bill discounting arrangements."

More than 200 vendors of IL&FS road construction arms, IL&FS Transportation Network Ltd (ITNL) and IL&FS Engineering & Construction Ltd (IECL), have started defaulting as IL&FS failed to honour the bill discounting agreement with financiers, mostly non-banking finance companies.