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Creditors approve sale of IL&FS education business to Career Point

Career Point buys SIL, 78% CoC approves of the plan. Career Point will repay SIL debt and get 80% stake also

Nidhi Rai  |  Mumbai 

The group has to take NCLT approval for this

The Committee of Creditors (CoC) of has approved the sale of the IL&FS’s Education business – School net India Limited which was formerly known as Education & Technology Service. CoC has approved the sale to Career Point Publications Private Limited (CPPPL). The CoC of represented all the financial creditors of the group.

The financial bid of CPPPL was approved by more than 78 per cent IL&FS’s creditors by value. The voting was done electronically and concluded on November 5, 2019.

The move is in tandem with the resolution plan submitted by the IL&FS board to the National Company Law Appellate Tribunal (NCLAT) and the National Company Law Tribunal (NCLT), Mumbai Bench.

IL&FS Group holds 73.7 per cent stake in School net India Limited (SIL); and School net India Limited holds 80 per cent stake in IL&FS Skill Development Corporation (ISDC) and also has two subsidiaries - IL&FS Cluster Development Initiative Limited (ICDI) and Skill Training Assessment Management Partners Limited (STAMP).

“CPPPL (Career Points Publications) made a binding offer at an implied enterprise value whereby it shall assume responsibility for all the debt of School net India and IL&FS Skills Development Corporation Ltd, in addition to paying a certain amount towards purchase of School net’s equity,” the release said.

The group has to take NCLT approval for this.

CPPPL also made a separate offer to purchase the businesses (including certain business debt) of two other subsidiaries of SIL, namely, ICDI and STAMP.

After the collapse of the IL&FS group in September 2018 government appointed a six-member board led by Uday Kotak managing director and chief executive of Kotak Mahindra Bank. The group crumbled down under massive debt and it also triggered a massive liquidity crunch among banks and non-banking financial across the country.

First Published: Tue, November 12 2019. 18:17 IST