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