IL&FS has initiated the sale of several assets to pay off its debt

Highlights In April, GAIL India emerged as highest bidder for IL&FS wind assets

IL&FS has initiated sale of several assets to pay off debt

Government replaced company's entire board last year

Infrastructure Leasing and Financial Services (IL&FS) said on Sunday that Japan's Orix Corp has expressed an interest in buying out the remaining 51 per cent stake in its wind energy assets.

Orix Corp plans to buy the stake to exercise its right under the terms of an existing agreement that allows Orix to match the price offered by the highest bidder for buying a stake in the wind power plants, the debt-ridden IL&FS said.

In April, GAIL (India) had offered Rs 4,800 crore ($683.01 million) for IL&FS's power plant portfolio, emerging as the highest bidder for its wind assets.

"GAIL Ltd's offer of about Rs 4,800 crore for 100 per cent of enterprise value contemplated no haircut to the debt of the SPVs (wind power plants), aggregating to about Rs 3,700 crore," the group added in a statement

The government replaced the company's entire board last year after defaults on some of its debt obligations triggered sharp declines in stock and debt markets, leading to fears about contagion in the country's financial sector

IL&FS has initiated the sale of several assets to pay off its debt.

($1 = Rs 70.2775)