Cash strapped Infrastructure Leasing and Financial Services (IL&FS) Monday said it has received approval from NCLAT appointed Justice (Retd) D K Jain for the proposed sale of its balance 51 per of stake in seven wind energy subsidiaries to Orix Corporation of Japan.
Justice Jain who has been appointed by the NCLAT to supervise the operation of the resolution process of IL&FS group companies, the company said in a release.
The wind energy subsidiaries are held under IL&FS Wind Energy Ltd (IWEL).
Currently, Orix Corporation owns 49 per cent stake in each of 7 operating wind power plants of the Group and had expressed its intent to buy out the remaining 51 per cent stake held by IWEL.
“The approval has been granted on the conditions that the proposal will now be placed before the NCLT for its approval and the bid amount realized from the sale be kept in an escrow account,” the release said.
This amount in the escrow account will only to be disbursed in accordance with the directions in the proceedings, pending before NCLT/NCLAT, it said.
Orix Corporation had decided to match the offer of the highest bidder, of approximately Rs 4,800 crore for 100 per cent of enterprise value, contemplating no hair cut to the debt of the SPVs aggregating to approx Rs 3,700 crore, the company said.
The sale to Orix will lead to resolution of the following seven companies of the IL&FS Group – Lalpur Wind Energy Private, Etesian Urja, Khandke Wind Energy Private, Retadi Wind Power, Wind Urja India Private, Tadas Wind Energy Private and Kaze Energy Limited.
The Board of IL&FS has already approved the sale of these entities to a Japanese firm in its meeting held on June 28, 2019.