Infrastructure Leasing & Financial Services (IL&FS) has filed a proposal with the National Company Law Tribunal (NCLT) for final approval to sell the remaining 51 percent stake in its wind energy business to Japanese Orix Corporation.
A NCLT judge issued an approval of the sale in late June on the condition that the bid amount was kept in an escrow account, only to be dispersed in accordance with the directions in the proceeding. The two companies signed a binding share purchase agreement and filed an in-principle approval from all lenders, subject to NCLT’s final approval.
IL&FS defaulted on its payments last year and owes in excess INR 1-lakh crore ($15.38 billion), is in the process of selling some of its assets to meet debtor obligations, reported The Hindu Business Line. The INR 4,800 crore ($687 million) transaction will reportedly cover the company’s entire debt.
Upon completion, the sale will transfer full ownership to Orix, which already owns a 49 percent stake in the wind farm. Orix initially expressed interest in buying out the company, which includes seven group companies, in May.
The companies are comprised of Lalpur Wind Energy, Etesian Urja, Khandke Wind Energy, Retadi Wind Power, Wind Urja India, Tadas Wind Energy and Kaze Energy.
