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.