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Last Updated : May 21, 2019 10:14 PM IST | Source: PTI

Sale of 10 IL&FS entities underway: Govt

The IL&FS board, which has to repay over Rs 90,000 crore to lenders, has decided to adopt an 'asset level resolution' with regard to various group companies and entities.

The resolution process for 10 profitable IL&FS group companies, having total debt of Rs 11,564 crore, is underway, the government informed the National Company Law Appellate Tribunal on May 21.

The IL&FS board, which has to repay over Rs 90,000 crore to lenders, has decided to adopt an 'asset level resolution' with regard to various group companies and entities.

The directors of IL&FS contemplated, "an asset level resolution and the sale of business verticals comprising of a basket of companies and other entities is the most feasible option for the resolution of the debt of the company."

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State-run GAIL has emerged as the highest bidder with an offer of Rs 4,800 crore for IL&FS Wind Energy (IWEL), which has seven operating wind power plants.

"Final bids received. GAIL India has emerged as the highest bidder," the affidavit said. The expected date of closure of the process for IWEL is June 30.

The ministry also said Japan-based Orix Corporation, which has a 49 percent stake in seven projects, has expressed its intention to acquire the remaining 51 percent stake in each of them.

Regarding ONGC Tripura Company, which has a total debt of Rs 3,337 crore, discussions are going on between ONGC and Tripura government.

For Gujarat International Finance Tec-City Company — which has a total debt of Rs 1,233 crore — discussions are going on with the Gujarat government, which has a 50 percent stake in the entity.

According to the affidavit, discussions are progressing with IOCL regarding IL&FS Paradip Refinery Water's valuation of assets. The entity's debt is around Rs 747 crore.

However, no bids have been received for IL&FS Solar Power, which has a debt of Rs 632 crore.

For Mangalore SEZ, discussions are going on with ONGC on valuation while sale process is being looked at for Tamil Nadu Water Investment Co and its subsidiary New Tirupur Area Development Corporation.

The resolution process for IL&FS Securities Services and its subsidiary ISSL Settlement & Transaction Services, which owes Rs 223 crore, is facing challenges due to restrictions imposed under investigations being carried out by investigative and regulatory agencies against an intermediary broker-client of ISSL, the affidavit said.

In the case of IL&FS Technologies, the board has approved a process akin to a Swiss challenge process, it noted.

During proceedings at the NCLAT, senior advocate Ramji Srinivasan said classification of seven more entities has been completed — from which five have been put under the 'green' category and two under the 'red' category.

Classification of 11 other entities is under process, he added.

NCLAT has directed listing the matter for hearing on May 27.

Under its resolution plan, the government has categorised IL&FS group entities into green, amber and red categories based on their respective financial positions.

Entities classified as 'green' would continue to meet their payment obligations, while 'amber' category firms can meet only operational payment obligations to senior secured financial creditors.

Those falling in the 'red' category are entities which cannot meet their payment obligations towards even senior secured financial creditors.

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First Published on May 21, 2019 08:39 pm
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