IL&FS starts asset sale drill to turn around
According to the company, in order to ascertain market interest and examine the feasibility of maximisation of value in an orderly and transparent manner, the board on Monday initiated the process of exploring the sale of an asset engaged in the securities services business. Accordingly, it appointed Arpwood Capital Pvt Ltd and JM Financial Ltd as the financial & transaction advisors, along with Alvarez & Marsal as resolution consultants.
Last month, the newly formed board at the infrastructure firm had submitted to the ministry of corporate affairs and the National Company Law Tribunal a report on its turnaround plan. The board had said in the report that it would look at one or more plans for the resolution of the group. This may include various measures such as asset divestments.
According to the new board’s assessment, the resolution options could broadly involve (individually or in a combination) significant capital infusion, divestments and debt restructurings at the group level and at a business vertical or platform level.
Infrastructure Leasing & Financial Services Ltd (IL&FS) on Monday announced that it has started the process of selling certain assets as part of its turnaround plan.
The firm has decided to publicly seek expressions of interest to assess interest for the sale of its stake in IL&FS Securities Services Ltd, a clearing member in equity and other derivatives, along with ISSL Settlement & Transaction Services Ltd, which provides clearing services in the commodities derivatives segment.
“The board is cognizant that these steps are required to put together a resolution plan for the IL&FS group based on market interest and price discovery for various assets. Any binding transaction for the sale of assets as well as the resulting resolution plan will be subject to the requisite approvals (including NCLT) before the transactions are implemented,” IL&FS said in a statement.