Selling out of trouble: IL&FS invites EoIs for education, AIF businesses

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Updated: December 21, 2018 7:11:49 AM

In a statement, IL&FS said the AIF business, undertaken primarily through IL&FS Investment Managers, manages equity funds and infrastructure debt funds, among others, with total assets under management (AUMs) of Rs 13,340 crore.

Assets sale: IL&FS board invites EoIs for education, AIF businesses

Continuing with its asset sale programme to generate funds for the debt-laden group, the government-appointed board of IL&FS on Thursday said it has invited expressions of interest (EoIs) for the group’s education as well as its alternative investment fund (AIF) management businesses.

In a statement, IL&FS said the AIF business, undertaken primarily through IL&FS Investment Managers, manages equity funds and infrastructure debt funds, among others, with total assets under management (AUMs) of Rs 13,340 crore.

The education business comprises the group’s interest in IL&FS Education and Technology Services, and other subsidiaries. This business is engaged in providing services to K-12 schools through proprietary content, devices and platforms.

So far, IL&FS has invited bids for its road projects, renewable energy assets, IL&FS Securities Services and IL&FS Settlement & Transaction Services, as it looks to generate funds to repay a total debt of Rs 91,000 crore, over half of which is owed to banks.

FE was the first to report on November 30 that the group was also planning to put on sale a fleet of company-owned luxury cars. Subsequently, IL&FS issued an e-tender on its website inviting interest for the same as well as for furniture, etc.

NCLAT to hear plea over moratorium on dues recovery from IL&FS on Jan 28

The National Company Law Appellate Tribunal (NCLAT) on Thursday admitted for hearing the government’s plea over moratorium on recovery of dues from debt-ridden IL&FS and group companies.

A two-member Bench, headed by Justice SJ Mukhopadhaya, said it would be “hearing the question of law” on the matter from January 28 onwards on a daily basis.

The bench said that since resolution is the way forward for IL&FS, several questions, such as how to hand over the company to a third party, what would be the composition of the committee of creditors and who would be the resolution professional, need to be addressed.

“What are the processes to be followed? We want to hear on these lines,” the Bench said and asked all parties including lenders to file their written submissions before the appellate tribunal.

Even as the Mumbai bench of the National Company Law Tribunal (NCLT) allowed the Centre to supersede the IL&FS board on October 1, it had turned down the government’s plea to provide the newly-appointed board immunity from any legal proceedings. This prompted the Centre to move its plea to the NCLAT.

On October 15, the NCLAT had stayed all proceedings against IL&FS group and its 348 firms till its further orders, over an urgent petition moved by the government. The NCLAT had said that the interim order will remain in force until further orders.

Some lenders, however, have opposed the government’s proposed 90-day moratorium on loan recovery from the debt-laden group and its subsidiaries.

IL&FS has debt of over `91,000 crore. The company and its arms defaulted on multiple payments in previous months. In order to not have any contagion effect on the financial markets and the NBFC sector, the government stepped in and got the NCLT permission to supersede the board.

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