IL&FS sells waste management business to Everstone arm; to reduce Rs 1,200 crore debt
The crippled IL&FS - which is under bankruptcy proceedings in NCLT - said the sale will reduce its overall debt by Rs 1,200 crore, which is the combined debt of entities under the group s environment businesses
PTI | April 8, 2021 | Updated 10:22 IST
Bankrupt Infrastructure Leasing & Financial Services (IL&FS) has sold the entire stake in the waste management arm IL&FS Environmental Infrastructure & Services (IEISL) and its subsidiaries to EverEnviro Resource Management (EverEnviro), an arm of the PE major Everstone Group, the companies said in separate statements.
Though the value of the deal was not specifically disclosed, the crippled IL&FS - which is under bankruptcy proceedings in NCLT - said the sale will reduce its overall debt by Rs 1,200 crore, which is the combined debt of entities under the group s environment businesses.
Indian Bank declared bad loans amounting Rs 202.32 crore to seven domestic borrowers, including Infrastructure Leasing & Financial Services, and $5.289 million lent to a foreign company as fraud. In a disclosure to the BSE, the bank said that it had provided a sum of Rs 129.97 crore as on December 31, 2020 for the loans to seven domestic borrowers and $5.289 million for the amount lent to the foreign borrower. The public sector lender said the eight borrowers who had borrowed money and committed the fraud include Srinivasan Health and Educational Trust (Rs.34.83 crore, nature of fraud is diversion of funds), Indian Gem & Jewellery Imperial Pvt. Ltd (Rs.30.08 crore, diversion of funds), Gold Touch Jewellery Pvt. Ltd (Rs.5 crore, diversion of funds), S R Alcobev Pvt. Ltd (Rs.30.54 crore, diversion of funds), Infrastructure Leasing & Financial Services Ltd (Rs.74.40 crore, diversion of funds), Agri Gold Projects Ltd (Rs.23.83 crore, diversion of funds). The nature of fraud was Diver
Debt-laden Infrastructure Leasing & Financial Services (IL&FS) on Thursday announced completion of a 49 per cent stake sale in its Chinese road asset, Chongqing Yuhe Expressway Co. (CYEC).
IL&FS has duly received Rs 1,035 crore (or $141.3 million) in Singapore as part of this stake sale transaction.
The stake is sold to China Merchants & PingAn Infrastructure Phase 1 Equity Investment Fund (Tianjin) Co. (PingAn), a fund jointly owned by PingAn Insurance and China Merchants, stated the release from IL&FS Group.
The transaction will help the group address Rs 2,600-crore (of its overall debt of close to Rs 99,000 crore as of October 2018). It further maintains its estimates of addressing aggregate debt of over Rs 56,000 crore by 2021-22.
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The parliamentary standing committee on finance, chaired by Jayant Sinha, has asked regulators Securities & Exchange Board of India (SEBI) and Reserve Bank of India (RBI) to review their regulations in the face of serious default crisis at Infrastructure Leasing & Financial Services (IL&FS). The committee also asked ministry of finance to seek factual report from the regulators on enforcement of credit rating agencies (CRAs) regulations, particularly action taken against CRAs who gave stable rating to IL&FS prior to the default crisis.
Explaining rationale for fresh evaluation of the credit rating framework, the committee says the regulations should be suitable modified or tightened, benchmarking them on greater objectivity, transparency and credibility in the credit rating framework and process.