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NCLT has given the nod to IL&FS to sell its education business to Falafal Technology Private Limited.
Falafal Technology is a subsidiary of Lexington Equity Holdings Ltd (LEHL), which owns 26.13 per cent in Schoolnet India, formerly known as IL&FS Education & Technology Services Limited.
As a part of the deal, Falafal has agreed to acquire 73.90 per cent of the shares of Schoolnet India Limited, in which IL&FS currently holds 68.93 per cent, IL&FS Employee Welfare Trust holds 4.73 per cent and LEHL holds the remaining shares.
The NCLT order said: “Approve the sale of the shares of Schoolnet India Limited (formerly known as IL&FS Education & Technology Services Limited) held by Infrastructure Leasing & Financial Services Limited and IL&FS Employee Welfare Trust to Falafal Technology Private Limited, free and clear of all encumbrances, liens, security interest and third party claims (including any statutory or tax claims) upon completion of the conditions as contemplated in terms of the Share Purchase Agreement dated June 24, 2020.”
LEHL will service Schoolnet’s entire debt of ₹600 crore and pay ₹7.36 crore in equity to IL&FS. Additionally, it will also pay a deferred purchase consideration of ₹6.29 crore.
The education assets of IL&FS include Schoolnet India Limited, Skill Training Assessment Management Partners Limited (STAMP) and IL&FS Cluster Development Initiative Limited (ICDI). STAMP and ICDI are wholly-owned subsidiaries of Schoolnet. Schoolnet has another subsidiary - IL&FS Skill Development Corporation Limited (ISDC), a joint venture with National Skill Development Corporation Limited (NSDC), in which Schoolnet holds 80.01 per cent and the remaining 19.99 per cent is held by NSDC.
In November, the committee of creditors of IL&FS had approved the sale of the education business, which would reduce its debt by ₹600 crore. In December, Justice D.K. Jain (Retired), a former Supreme Court Judge gave his nod for the sale of IL&FS education business.
Additionally, NCLT has given its go-ahead to initiate bankruptcy proceedings for ITNL Infrastructure Developers, ITNL International DMCC, in accordance with the laws of Dubai, both of which are offshore entities of IL&FS. IDMCC is the wholly owned subsidiary of ITNL International Pte Limited (IIPL), which is the subsidiary of IL&FS Transportation Networks Ltd (ITNL).
In its recent ‘Progress Report’ the IL&FS Board had said that it expects to resolve ₹57,000 crore of debt, out of a total of ₹1 lakh crore debt.
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