The IL&FS Group on Thursday said Justice (Retd) D K Jain, who is overseeing the IL&FS resolution and divestment process, has granted approval for the sale of its education business, Schoolnet India Ltd, to Career Point Publications Pvt Ltd (CPPPL).
Jain approved sale of education business on the conditions that IL&FS shall place the proposal before the NCLT for its approval; and the bid amount, so realised, will be kept in an escrow account to be disbursed in accordance with the directions of the NCLT and the National Company Law Appellate Tribunal (NCLAT).
The IL&FS Group has already received approval from the committee of creditors to sell its education business to CPPPL and will now approach the National Company Law Tribunal (NCLT) for final approval to conclude the transaction.
This transaction, on completion, would resolve nearly Rs 600-crore debt of IL&FS Group.
CPPPL, part of the Career Point Group, had emerged as the highest bidder for acquiring IL&FS' education business.
IL&FS Group holds 73.70 per cent in Schoolnet India Ltd (SIL), and Schoolnet India holds 80 per cent stake in IL&FS Skill Development Corporation (ISDC) and also has two subsidiaries IL&FS Cluster Development Initiative Ltd and Skill Training Assessment Management Partners Ltd.
CPPPL made a binding offer, at an implied enterprise value, whereby it shall assume responsibility for all the debt of Schoolnet India and ISDC, in addition to paying a certain amount towards purchase of SIL's equity.
The financial bid of CPPPL was approved by more than 78 per cent of IL&FS Ltd's creditors (by value) through an e-voting process that concluded on November 5, 2019.
This was as stipulated under the Resolution Framework for IL&FS Group submitted with NCLAT and NCLT, Mumbai Bench.
As part of this transaction, CPPPL will also get ownership of 80 per cent stake in IL&FS Skills Development Corporation held by SIL.
CPPPL also made a binding offer to purchase the businesses (including certain business debt) of two other subsidiaries of SIL IL&FS Cluster Development Initiative Ltd and Skill Training Assessment Management Partners Ltd for an additional consideration.