New Delhi: 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 (NCLAT) said on Tuesday.
The board of IL&FS, 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 have contemplated that "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.
State-run GAIL has emerged as the highest bidder with an offer of Rs 4,800 crore for IL&FS Wind Energy Ltd (IWEL), which has seven operating wind power plants.
"Final bids received. GAIL India Ltd has emerged as the highest bidder," the affidavit said.
The ministry also said Japan-based Orix Corporation, which has 49 percent stake in each of the seven projects, has expressed its intention to acquire remaining 51 percent stake in each of them. The expected date of closure of the process for IWEL is 30 June.
Regarding ONGC Tripura Company Ltd, 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 Ltd—which has a total debt of Rs 1,233 crore—discussions are going on with the Gujarat government. The government has 50 percent stake in the entity.
According to the affidavit, discussions are progressing with IOCL regarding IL&FS Paradip Refinery Water Ltd'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 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 Ltd, which owes Rs 223 crore, is facing challenges due to ongoing investigations.
They are "currently facing challenges due to a restriction 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. Five of them have been put under 'green' category and the remaining two have been put under 'red' category.
Classification of 11 other entities is under process, he added.
NCLAT has directed listing the matter for hearing on 27 May.
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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Updated Date: May 22, 2019 07:18:15 IST