NCLAT approves sale of IL&FS subsidiary to aid debt repayment

The National Company Law Appellate Tribunal (NCLAT) has approved the sale of IL&FS's subsidiary, IL&FS Paradip Refinery Water Ltd (IPRWL), to a successful bidder. This sale could help IL&FS repay approximately Rs 1,000 crore in debt. Despite objections from Indian Oil Corporation (IOCL), NCLAT ruled that IL&FS can proceed with the sale. The tribunal emphasized that the buyer must have the necessary technical expertise as outlined in the existing agreements. As of September 30, 2024, IL&FS has repaid Rs 38,082 crore to creditors. The group is under pressure to resolve the remaining 58 firms by March 31, 2025, as part of its ongoing debt restructuring efforts.