IL&FS proposes to NCLT sale of wind energy assets to ORIX of Japan

Mumbai: Embattled IL&FS group has proposed to the National Company Law Tribunal (NCLT) the sale of its wind energy business to Japan's Orix Corporation which will help reduce the debt of the company by Rs 4,800 crore.

Infrastructure Leasing and Financial Services (IL&FS) said in a statement it has filed the proposal to complete the sale of its wind energy business, held under IL&FS Wind Energy Limited (IWEL) to ORIX Corporation of Japan, with NCLT for final approval.

The proposal has been filed before the Tribunal after completing binding Share Purchase Agreement with ORIX Corporation and obtaining "in-principle" approval from all lenders for completing this transaction, subject to NCLT approval.

IL&FS said it had already received approval for the sale of its wind energy business from Justice (Retd) D K Jain, appointed by the NCLAT to supervise the operation of Resolution Process of IL&FS group companies, earlier last month.

Justice Jain had approved the sale on the conditions that the proposal will be placed before the NCLT for its approval and the bid amount realised from the sale be kept in an escrow account.

This amount in escrow account will only to be disbursed in accordance with the directions in the proceedings, pending before NCLT/NCLAT, as applicable.