IL&FS crisis aftermath: Steps for asset monetization initiated
IL&FS on Monday said it has started the process to raise funds from the sale of its assets. In a statement, the company said its new board of directors has decided to solicit expressions of interest (EOIs) to assess the interest for the sale of its stake in IL&FS Securities Services (ISSL) and in ISSL Settlement & Transaction Services (ISTSL).
The announcement means that an agreement struck in June by IL&FS’ erstwhile board to sell ISSL to IndusInd Bank is nullified, and the process of disposing of the subsidiary will start afresh.
ISSL, incorporated in July 2006, is a capital markets intermediary for professional clearing, depository, and custodial services. It services both retail and institutional clients, foreign portfolio investors and foreign institutional investors. ISSL Settlement & Transaction Services provides professional cleaning services in the commodities derivatives segment.
IL&FS said any agreement for the sale of the two assets will be subject to requisite approvals (including an approval from the National Company Law Tribunal (NCLT)) before the transactions are implemented.
IL&FS further said it has appointed Arpwood Capital and JM Financial as the financial and transaction advisers, along with Alvarez & Marsal as resolution consultants.
On October 1, IL&FS board was suspended under the powers of Section 242 of the Companies Act 2013.
The government argued that the newly appointed board is likely to face problems relating to IL&FS and its group companies.
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