• ORIX Corporation owns 49% stake in each of IL&FS’s seven power plants
   
• Proposal has now been filed with NCLT after the completion of Share Purchase Agreement

In a bid to sell its wind power business, Mumbai headquartered leasing and finance company, IL&FS has reportedly filed a proposal for the sale of IL&FS Wind Energy Limited (IWEL) to Japan-based ORIX Corporation.

Last month, IL&FS had received permission for the sale of its wind energy subsidiary From Justice D.K. Jain who was appointed by the National Company Law Appellate Tribunal (NCLAT) to oversee the debt resolution process of the IL&FS companies.

As per a statement by the company, the proposal has now been filed with NCLT after the completion of Share Purchase Agreement with ORIX Corporation and obtaining approval from the lenders in order to facilitate completion of the transaction.

For the record, the deal was sanctioned by D.K. Jain on the basis of condition that the proposal must be put in front of NCLT for approval and the amount raised from the sale is to be kept in an escrow account. Additionally, the money in the account have to be disbursed according to the directions in the proceedings.

According to trusted sources, ORIX Corporation owns 49% stake in each of IL&FS’s seven power plants and had reportedly requested to purchase the remaining 51% stake of IL&FS Wind Energy Limited. The transaction was to be carried out under an existing agreement that allows ORIX to match the price offered by the highest bidder in order to purchase the wind power plant’s stake in diverse special purpose vehicles.

Following the same, ORIX has decided to match the offer of the highest bidder valued at Rs. 4,800 crores for 100% enterprise value contemplating no haircuts in terms of the debts of the special purpose vehicles amounting to Rs. 3,700.

Reportedly, with the sale of its wind arm to ORIX, IL&FS will effect debt resolution of the following IL&FS Group Companies – Wind Urja India, Tadas Wind Energy, Retadi Wind Power, Lalpur Wind Energy Private Ltd ,Etesian Urja Kaze Energy and Khandke Wind Energy.

Source Credits : https://economictimes.indiatimes.com/industry/energy/power/ilfs-seeks-nclt-approval-for-sale-of-wind-energy-arm/articleshow/70629319.cms