MUMBAI: IL&FS has received approval from the NCLAT-appointed supervisor to oversee the proposed sale of its wind energy subsidiaries, taking the process of sale closer to completion. Justice (Retd) D K Jain approved the sale of wind energy subsidiaries under IL&FS Wind Energy Ltd (IWEL) to Orix Corporation of Japan.
Orix, one of the shareholders of IL&FS and owner of a 49 per cent stake in each of the seven operating wind power plants of the IL&FS Group exercised its right to buy the remaining 51 per cent stake of IWEL.
“Orix Corporation decided to match the offer of the highest bidder, of approximately `4,800 crore for 100 per cent of enterprise value, contemplating no haircut to the debt of the SPVs aggregating to approx `3,700 crore,” IL&FS said in a media release.
This approval will now be placed before NCLT for its approval and the money realised from the sale would be kept in an escrow account. The amount in the escrow will be disbursed in accordance with the directions of the NCLT/NCLAT.
Major lenders in this case include Power Finance Corporation, Bank of Baroda, which had provided working capital and project financing, and India Infra Debt Ltd. With this sale, seven of the IL&FS entities would see a resolution, which is only in the early stages of asset sales to find an overall group-level resolution.