Debt-ridden Infrastructure Leasing and Financial Services (IL&FS) Group on Tuesday said Committee of Creditors (CoC) has approved the sale of Schoolnet India Ltd (erstwhile IL&FS Education & Technology Service Ltd) to Career Point Publications Private Ltd (CPPPL).

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The CoC of IL&FS represented all the financial creditors to IL&FS Ltd, the holding company for the IL&FS Group.

The financial bid of CPPPL was approved by more than 78 percent of IL&FS Ltd’s creditors (by value) through an e-voting process that concluded on November 5, 2019.

According to the press release, IL&FS Group holds 73.70 percent stake in Schoolnet India Limited (SIL) and Schoolnet India Limited holds 80 percent stake in IL&FS Skill Development Corporation (ISDC) and also has two subsidiaries -IL&FS Cluster Development Initiative Ltd (ICDI) and Skill Training Assessment Management Partners Limited (STAMP).

CPPPL made a binding offer, at an implied enterprise value, whereby it shall assume responsibility for all the debt of Schoolnet India Limited (SIL) and IL&FS Skills Development Corporation Limited (ISDC), in addition to paying a certain amount towards the purchase of SIL’s equity. As part of this transaction, CPPPL will also get ownership of 80 percent stake in IL&FS Skills Development Corporation (ISDC) held by SIL.

CPPPL also made a binding offer to purchase the businesses (including certain business debt) of two other subsidiaries of SIL i.e. IL&FS Cluster Development Initiative Limited (ICDI) and Skill raining Assessment Management Partners Ltd (STAMP) for additional consideration.

The Board of IL&FS Ltd approved the sale in its meeting held on November 7, 2019.

The Career Point Group, through its flagship company, Career Point Ltd is a leading education provider in India with a diverse set of offerings.

IL&FS and its group companies had debt in excess of Rs 99,000 crore as of September 2018, and its default on debt payments caused a liquidity crisis in the non-banking financial companies.