IL&FS gets over 12 expressions of interest for its stake in 2 subsidiaries

IL&FS Transportation Networks | The company defaulted on the interest on non-convertible debentures due on August 25, 2020. (Image: Reuters)

Infrastructure Leasing & Financial Services (IL&FS) has received more than a dozen expressions of interest (EoIs) from potential buyers towards acquiring stake in two subsidiaries of the infrastructure group.

The two arms being IL&FS Securities Services Ltd (ISSL) and ISSL Settlement & Transaction Services Ltd (ISTSL). The new board of the company is scrutinising the EoIs for eligibility.

Earlier this month, IndusInd Bank had confirmed that its agreement to fully acquire ISSL had been terminated due to non fulfilment of conditions.

"IL&FS has received a strong response to its asset monetisation process, initiated a fortnight ago, towards developing a resolution plan(s) for the IL&FS group," the company said in a statement.

The last date for filing an EoI for the two subsidiaries was November 23, 2018. EoIs have been received from a mix of banks, private equity firms and other financial services companies, IL&FS confirmed.

Qualifying bidders will then be invited to review information on the business to enable them to submit commercial bids.

In early September, signs of a cash-crunch at the IL&FS group first came to light after it defaulted on its debt obligations.

IL&FS' total debt stood at Rs 91,091.30 crore as on March 31, 2018, and the liabilities could increase, the company's new board said after its first meeting on October 4.

Also Read: IL&FS is a 'complex maze': Will public money come to the rescue yet again?

The group will shortly launch an monetisation process for sale of assets as part of its ongoing resolution process.

Any binding transaction for sale of assets, as well as the resulting resolution plan(s), will be subject to requisite approvals (including the National Company Law Tribunal) before the transactions are concluded.

The company said, "The Board of IL&FS appointed by the NCLT vide its order dated October 1, 2018 and October 3, 2018 had submitted to the Ministry of Corporate Affairs a report on the progress and the way forward dated October 30, 2018, which in turn was submitted to the NCLT."

Reiterating its stand, IL&FS added that the objective of the board is to achieve, by one or more plan(s), the resolution of the group through certain measures, including asset divestment.

Also Read: IL&FS timeline: When and what happened so far?