Khaitan, CAM assist IL&FS on sale of waste management arm

Khaitan & Co and Cyril Amarchand Mangaldas advise on IL&FS waste management sale

Khaitan & Co advised EverEnviro Resource Management when it acquired the entire waste management business of Infrastructure Leasing and Financial Services (IL&FS), consisting of IL&FS Environmental Infrastructure & Services (IEISL), along with its subsidiaries Dakshin Dilli Swachh Initiatives, Swayam Swachatta Initiative, RDF Power Projects, East Delhi Waste Processing and Kanak Resources Management.

Cyril Amarchand Mangaldas advised debt-laden IL&FS, which held a 97.54% equity stake in IEISL. IL&FS Employee Welfare Trust held the remaining 2.46% stake.

The sale, which has been described as one of the largest acquisitions in municipal
solid waste management, was for an undisclosed amount. It was announced on 7 April and will reduce IL&FS’s overall debt by INR12 billion (USD164.6 million).

Khaitan & Co’s core team comprised partner Gahan Singh, counsel Anuj Sahay, principal associates Jhinook Roy, Sagar BM and Shikha Rastogi, and associates Sarat Chandra, Sathyajith Nair and Ketaki Dandiya.

The core team was assisted by: Partners Prateek Kumar, Kumar Saurabh Singh and principal associate Raveena Rai (NCLAT resolution framework); partners Raj Panchmatia, Peshwan Jehangir, Pranav Sampat and principal associate Himanshu Vidhani (bid guarantee invocation and pre-litigation advisory); partner Gaurav Juneja and associate Aayush Jain (NCLT order approving the bid); partner Anisha Chand and associates Anmol Awasthi and Arvind Pillai (competition law); and partners Anshul Prakash and Deepak Kumar, and associate Prachi Vijay (employment law).

EverEnviro Resource Management is a subsidiary of Green Growth Equity Fund, an Indian climate fund. It is managed by EverSource Capital, which is a joint venture between Everstone Capital and Lightsource bp.

The deal was the first sale of IL&FS’s assets under the resolution framework approved by the National Company Law Appellate Tribunal.