IL&FS Seeks NCLT’s Final Approval To Sell Wind Power Plants To Japan’s Orix Corp.
The IL&FS Group has sought a final approval from National Company Law Tribunal to sell its wind power assets to Japan’s Orix Corporation, a move that will help reduce its debt by Rs 4,800 crore.
In a statement on Sunday, Infrastructure Leasing and Financial Services Ltd. said it has filed the deal proposal with NCLT for its final approval. IL&FS has already completed a binding share purchase agreement with Orix Corporation and obtained “in-principle” approval from all lenders for completing the transaction.
The stake sale deal also has the approval of Justice (Retired) DK Jain, appointed by the National Company Law Appellate Tribunal to supervise the resolution process of IL&FS Group companies.
Jain had approved the IL&FS-Orix deal on the condition that the stake sale proposal will be placed before the NCLT for its final approval. The bid amount has to be kept in an escrow account and disbursed in accordance with the directions in the proceedings pending before the NCLT/NCLAT—as applicable.
Orix, which owns 49 percent stake in each of seven operational wind power plants of the IL&FS Group, had expressed its intent to buy out the remaining 51 percent stake held by IL&FS Wind Energy Ltd.
The IL&FS-Orix deal will lead to resolution of seven IL&FS Group companies, namely Lalpur Wind Energy Pvt. Ltd., Etesian Urja Ltd., Khandke Wind Energy Pvt. Ltd., Retadi Wind Power Ltd., Wind Urja India Pvt. Ltd., Tadas Wind Energy Pvt. Ltd. and Kaze Energy Ltd.
The government-appointed IL&FS board had approved the sale of these companies to ORIX in its board meeting held on June 28.