IL&FS
Insolvency Appellate Tribunal NCLAT has allowed debt-ridden IL&FS Group to sell its subsidiary IL&FS Paradip Refinery Water Limited (IPRWL) to the successful bidder. According to reports, this can help IL&FS in repaying its loan of about Rs 1,000 crore. IPRWL was set up to meet the water needs of the 15 million tonne per annum capacity Paradip Refinery Project being developed by IOC in Odisha.
Company repaying loan by selling property
IL&FS has been reducing its debt by selling assets, and had not received consent from the IOC to sell its stake in IPRWL. In such a situation, IL&FS had approached the National Company Law Appellate Tribunal (NCLAT), which is monitoring the process, to direct IOCL to acquire 100 per cent shareholding in IPRWL at an appropriate valuation or allow it to be sold.
Permission to sell to successful bidder
After hearing the arguments of both the parties, NCLAT said that IOC has not given consent for acquisition of 100 per cent of the shareholding, hence we are of the view that ILF&S should be allowed to sell it to the successful bidder as per the procedure laid down under the resolution framework. Needed NCLAT, however, made it clear in its order that the successful entity should have the necessary technical know-how to take the project forward.
Instructions to complete the process by 31 March 2025
Recently, NCLAT had directed the debt-ridden IL&FS group to complete the resolution process for the remaining 58 companies by March 31, 2025. A two-member bench of NCLAT had said that the resolution process for the remaining 58 entities is in an advanced stage and considerable progress has been made by IL&FS (Infrastructure Leasing and Financial Services), which is settling the loans through asset resolution and other mechanisms. . The bench includes NCLAT Chairman Justice Ashok Bhushan and Justice Barun Mitra.
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