IL&FS Investment Managers Ltd News

IL&FS gets NCLAT nod to sell subsidiary IPRWL to successful bidder

Insolvency appellate tribunal NCLAT has given a go-ahead to debt-ridden IL&FS group for the sale of its subsidiary IL&FS Paradip Refinery Water Ltd (IPRWL) to a successful bidder. According to reports, this may enable IL&FS to repay a debt of around Rs 1,000 crore. IPRWL was set up to meet water requirement of the 15 MTPA Paradip Refinery Project developed by IOC in Odisha. IL&FS, which is paring its debt through asset resolution, has not received consent from IOCL for sale of its stake in IPRWL. It had approached the National Company Law Appellate Tribunal (NCLAT), which is supervising the process, to direct IOCL to either acquire 100 per cent shareholding in IPRWL at a fair valuation or grant its consent as per the terms of the BOOT agreement and the RFP so as to enable IL&FS to sell it. However, IOCL through its counsel submitted that the BOOT (Build, Own, Operate, and Transfer) agreement with IL&FS was till 2039 and it cannot be disinvested before the said .