Brookfield has extended the share purchase agreement to buy the IL&FS headquarters in a Rs 1,080 Crs deal until June after the initial deadline lapsed. Brookfield has extended the share purchase agreement by six months from December to June given the delays in closing the deal.
Project Holdings Seven (DIFC) which is affiliate of Brookfield has signed the agreement for 12,651 sq mts land at plot No C-22 in the G-Block of BKC together with the IL&FS Financial Centre in December 2021.
In January 2022 the resolution was put to vote and approved by 73.57% votes by the committee of creditors. However, in September 2022 mortgage lending major HDFC asked the court to restrain IL&FS from selling the property.
The National Company Law Appellate Tribunal (NCLAT) rejected HDFC’s request to halt sale, saying sale in accordance with revised resolution framework authorized by appellate in March 2020 and cannot be hinderance to approving proposal.
HDFC is likely to file a petition in the Supreme Court of India against the deal. The matter pertains to Rs 400 Crs loan by HDFC to IL&FS through a lease rental discounting transaction. The loan was to be paid back from the cash flows generated by IL&FS which is assigned its cash flow to HDFC. But the company’s new management decided to sell property as a part of plan to reduce its debt.
