Mumbai: The bankrupt shadow lending group Infrastructure Leasing and Financial Services (IL&FS) has completed the sale of its 51% stake in seven operating wind power assets, with 874 MW of generation capacity, to ORIX Corporation of Japan for ₹806 crore. This is the first sale of assets that the group has been able to close, and the company said it will repay the lenders in full.
The assets were held under IL&FS Wind Energy Limited (IWEL). With this development, ORIX, which previously owned 49% in each of the seven SPVs, now has 100% ownership.
ORIX has transferred to an escrow account, both the equity sale consideration of approximately ₹590 crore and an additional ₹216 crores towards full repayment of debt advanced by IL&FS Energy Development Company Limited to the SPVs, IL&FS said in a press release. The sale has been approved by the National Company Law Tribunal, Mumbai, since IL&FS’ bankruptcy resolution is now a court-monitored process.
The entire debt of approximately ₹3,500 crore held in the seven SPVs will continue under the ownership of ORIX, resulting in no haircut for lenders. External lenders to the wind SPVs are Power Finance Corporation, Bank of Baroda and India Infradebt.
The seven SPVs — Lalpur Wind Energy Private Limited, Etesian Urja Limited, Khandke Wind Energy Private Limited, Ratedi Wind Power Limited, Wind Urja India Private Limited, Tadas Wind Energy Private Limited and Kaze Energy Limited — had been classified as green (solvent) entities and continued to deliver consistent performance under the Uday Kotak-led board of directors.
Earlier this year, ORIX had expressed its intent to buy out IWEL’s 51% stake by exercising its right under the terms of an existing MoU enabling ORIX to match the price offered by the highest bidder for purchasing the said stake. GAIL had emerged as the highest bidder at the end of a public process with an offer of ₹4,800 crores for 100% of enterprise value. The new board had approved the sale of these seven SPVs to ORIX at its meeting held on June 28.
The new board, as part of the overall resolution process for IL&FS Group, has initiated sale of a number of other group assets through which its seeks to address a significant portion of group debt of nearly ₹1 trillion, the press release said.