IL&FS' Creditors Approve Sale of Schoolnet India to Career Point
Debt-ridden Infrastructure Leasing & Financial Services Ltd (IL&FS) says its committee of creditors (CoC) have approved sale of its education unit Schoolnet India Ltd (erstwhile IL&FS Education & Technology Service Ltd) to Career Point Publications Pvt Ltd (CPPPL). No financial details were provided by the company. 
 
"The financial bid of CPPPL was approved by more than 78% of IL&FS Ltd's creditors through an e-voting process that concluded on 5 November 2019," IL&FS said in a statement, adding that the process was under the resolution framework for IL&FS group submitted to the National Company Law Appellate Tribunal (NCLAT) and the Mumbai bench of National Company Law Tribunal (NCLT).
 
The CoC represents all the financial creditors to IL&FS, the holding company for the IL&FS group. 
 
"CPPPL made a binding offer, at an implied enterprise value, whereby it shall assume responsibility for all the debt of Schoolnet India and IL&FS Skills Development Corp Ltd (ISDC), in addition to paying a certain amount towards purchase of SIL's equity. As part of this transaction, CPPPL will also get ownership of 80% stake in ISDC held by SIL," the company says.
 
Schoolnet India provides education-technology services to K-12 schools and students through proprietary digital content, devices, platforms and solutions. 
 
At present, IL&FS group holds 73.70% stake in Schoolnet India, while Schoolnet India holds 80% stake in ISDC. Schoolnet India has two subsidiaries -- IL&FS Cluster Development Initiative Ltd (ICDI) and Skill Training Assessment Management Partners Ltd (STAMP).
 
According to IL&FS, Career Point made a binding offer to purchase the businesses, including certain business debt of two other subsidiaries of SIL, like ICDI and STAMP for an additional consideration.
 
On 7 November 2019, the board of IL&FS approved the sale in its meeting. Under the resolution framework, the company will seek approval of retired Justice DK Jain. Justice has been appointed by the NCLAT to oversee resolution process of IL&F.
 
ISDC offers job linked vocational program to the youth. ICDI provides advisory and management services to governments, and industries for development of common infrastructure and facilities in brownfield and greenfield industrial clusters, while STAMP provides assessment solutions on a life-cycle approach: students, youth (job seekers) and working professionals.
 
If the transaction goes through it would be a major development in the resolution process after the IL&FS completed the sale of its wind energy assets to Orix Corporation of Japan in October last.
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    COMMENTS

    Ashok Maheshwari

    4 weeks ago

    well, Govt. is responsible for the mess in which the telecom industry is by not providing equal level playing field.












    Ramesh Poapt

    4 weeks ago

    deal amt/haircut???

    Vodafone issues ultimatum to Indian govt: UK media
    The British media is calling Vodafone's ultimatum not to pump in more capital in India, a "potentially disastrous but fitting end to Vodafone's big bet on India" where the destruction of value has been complete.
     
    Global telecom player, Vodafone has told Indian authorities that it will not provide more capital for its India business unless there are provisions allowing it to compete with Mukesh Ambani's Reliance Jio.
     
    According to British media reports, Nick Read, Vodafone's CEO has for all practical purposes issued an ultimatum to the Indian government.
     
    Vodafone is scheduled to give its half year report on Tuesday. Reports say that Read has communicated to the Modi government that it will not provide any more capital in India.
     
    Read's ultimatum is to communicate to the government that "either they should take their boots off the neck of the industry and allow it to better compete with Mukesh Ambani on 5G, or Vodafone Idea is destined for a potentially chaotic final act with potential repercussions for India's international standing."
     
    Vodafone entered the market in 2007 via a multibillion-pound acquisition. Since then it has pumped in billions more, always hoping that the sheer scale of India would one day deliver returns to match. "Throughout, however, Indian officialdom welcomed Vodafone with all the warmth of a Himalayan mountaintop. It has been in court since the moment it arrived and used as a soft target by politicians and taxmen. The destruction of value has been complete," a report said.
     
    According to reports, the Vodafone chief executive has had enough in the Indian market as a major foreign investor.
     
    Vodafone, the reports suggest is also unhappy with the way several policy decisions have gone against it and favoured Reliance Jio.
     
    Shareholders have already written off the value of Vodafone Idea so if it goes bust the fallout should be readily containable, the reports said.
     
    Vodafone is also facing a pile of debt in the home markets of UK and would find it difficult to again invest so much in India.
     
    Reports said that Read, Vodafone's chief executive for little over a year, is one foreign investor who has had enough, it seems.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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    COMMENTS

    Purshotam Singh

    4 weeks ago

    Oh really is voda going back to UK,
    Than ok let him go

    Prasun Johari

    4 weeks ago

    Vodafone's management is useless. In 2000 they bought a German company at a high value and 6 years later Vodafone plunged to massive losses after one-off costs of more than £23.5bn related to the merger.

    Ramesh Poapt

    4 weeks ago

    how airtel/s mittal is so stable in this situation?!
    any idea!?

    Vaishak Muralidharan

    4 weeks ago

    I guess we still have the "vibrant" loss-making PSU's and Mr. Ambani's "Jio" Shree Ram to take over the industry now, like he said in his letter. Who wants to remember the half dozen that shut shop and the two others who will soon follow suit?
    If MoneyLife could get some insider news on which industry Mr. Bambani plans to siege next, I think we can hedge our positions!!

    REPLY

    Vivek Naik

    In Reply to Vaishak Muralidharan 4 weeks ago

    True

    Ibrahim Sakarwala

    4 weeks ago

    Mr read should not forget the plundering done by the East India company on pretext of doing business....... Here they have issues paying their legitimate taxes which they have been avoiding on technical grounds, and what about the time when they used to fleece us by charging by the minute. They should accept that tables have turned and India no longer is a timid nation, law has to be followed. And in no uncertain terms they can say due diligence and application of fairness in law was not employed by our honourable Supreme Court.

    REPLY

    vikram chinmulgund

    In Reply to Ibrahim Sakarwala 4 weeks ago

    Superbly unassailable logic. Let's assume it's correct. What are your suggestions for Mr.Read to compensate for losses caused by a company operating in a different domain 300 years ago?
    Don't forget adjustments for currency appreciation, merging of independent economies of princely states, inflation and the conversion from Rupaiyah, Annas and Pice to Rupees and Naye Paise to and then to INR and Paise.
    Also, since both MTNL and Jio are Indian companies should Reliance compensate land line users for decades of poor service by MTNL along with the various currency adjustments listed above ?

    Vaishak Muralidharan

    In Reply to Ibrahim Sakarwala 4 weeks ago

    Wow!

    Another whistleblower guns at Infosys' Salil Parekh
    Another whistleblower from global software major Infosys accused its Chief Executive Officer (CEO) Salil Parekh of committing misdeeds and urged the Chairman and the board of directors to act against him on his volatile complaints.
     
    "Though it is a year and 8 months since Parekh joined the company, he operates from Mumbai in violation of the condition that the CEO has to be based in Bengaluru and not Mumbai. What is stopping the board to insist on his movement to Bengaluru," said the whistleblower in an unsigned and undated letter to Infosys Chairman and co-founder Nandan Nilekani and Independent Directors on the Board.
     
    Claiming to be an employee in the $11-billion company's finance department, the whistleblower complained that he was unable to disclose his identity fearing retaliation for the damning disclosures he was making against Parkeh.
     
    "I am an employee working in the finance department. I am submitting this whistleblower complaint as the matter is so volatile that I fear retaliation if I disclose my identity. Please excuse me for the same, but the matter is of grave importance," said the employee in the complaint, accessed by IANS through sources on Monday night.
     
    As an employee and a shareholder, the whistleblower said it was his duty to bring to the notice of the chairman and the board a few facts about Parikh that were eroding the value systems of the company.
     
    "Hope that you will execute your responsibilities in the true spirit of Infosys and in favour of employees and shareholders who have so much of faith in the company," the complaint noted.
     
    As Parekh did not relocate to Bengaluru even after he was given two months to do and was visiting the tech hub twice a month, the techie said the company had incurred Rs 22 lakh towards his airfare and local transportation.
     
    "Four business class tickets per month plus home to airport drop in Mumbai, airport pick-up in Bengaluru and drop on the return journey," alleged the whistleblower.
     
    Infosys, however, did not respond to the whistleblower's complaint till the time of releasing this news breaking story.
     
    This is the second whistleblower's complaint after a few anonymous employees accused Parekh and Chief Financial Officer (CFO) Nilanjan Roy of unethical practices in a 2-page letter to the board on September 20, a copy of which IANS accessed through sources.
     
    When there was no response from the board to their letter, an unnamed whistleblower on behalf of the unethical employees on October 3 wrote to the US-based office of the Whistleblower Protection Programme, alleging willful mis-statement material accounting irregularities for (the) last two quarters (April-September).
     
    Reminding the board that all the employees pay for their transport from home to office and back, the senior staffer said it was not wrong to expect the same from the CEO.
     
    "Please initiate action to recover this money (transport expenses) from the CEO immediately. Parekh is a smart cookie. He has taken an apartment on rent in Bengaluru to hoodwink people who may question him, but that does not mean he has relocated to Bengaluru. He has done this with malicious intentions to mislead the board and the company's founders."
     
    Referring to the CEO's record of visits to Bengaluru, the complaint said Parekh leaves Mumbai leisurely at 10 a.m. and reaches Bengaluru by 11.30 a.m. and office by 1.30 p.m.
     
    "Parekh spends an afternoon in office and next forenoon he is off to Mumbai by 2 p.m. This kind of involvement of the CEO in the company is the worst that we have seen till date. This, unfortunately, is not setting the right example for other employees to follow. Incidentally, it has become the norm. Many people have started working from home and nobody to ask them any questions. Even if tough managers want to ask questions, how would they as the CEO himself is working from home," the whistleblower recalled.
     
    Accusing the CEO of having stock market connections and investing in several firms, the complainant said Parekh stayed in Mumbai to have a better oversight on his investments.
     
    "This is a gross violation of the company's value system and has to be investigated and action for (Parekh's) termination should be initiated. Will the company allow such a deed by other employees? If not, then why spare the CEO? What is the toothless NRC (Nomination Remuneration Committee) doing?" asked the whistleblower.
     
    Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
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