Exclusive financial advisor to Kuantam Papers Ltd (KPL)

Deal Highlights:

KPL faced stress situation due to COVID as end user market i.e., offices/schools/etc. remained shut for long resulting in reduced capacity utilization
Ongoing project got delayed as lenders held up last mile disbursements with COVID onset
Comprehensive Debt Resolution involved Interest & Principal repayment moratorium
Full disbursement of pending loans for capex completion
Correction in working capital involved by reduction in margins & NFB to FB inter-changeability

Ensured further disbursement for ongoing capex even during the restructuring process
On boarding lenders for Resolution Plan since paper industry not mentioned in 26 sectors identified by RBI
Arranged interim funding at reasonable cost, very rare case in restructuring accounts
Assisted & coordinated for all diligences with the external agencies
Achieved successful closure within tight timelines as prescribed by RBI with inherent challenges for document execution by all lenders and perfection of security as well

COVID – 19 implications posed multiple challenges such as plant shutdowns, labour shortage, supply chain disruption, subdued demand etc., which affected BASML’s liquidity position
Comprehensive Debt Resolution involved:
- Addressal of cashflow mismatch by securing principal moratorium & extension of tenor of loans
- Avoidance of bundled repayment obligations by restructuring repayment schedule within the extended repayment period
- Sponsor’s support for resolution plan helped keep the account classification intact as “Standard”
- Resolution of concern of Security Pooling amongst all lenders in Multiple Banking Arrangement

Effectively coordinated with all lenders under Multiple Banking Arrangement for successful closure within prescribed timelines
100% Lenders’ support achieved for invocation and implementation of resolution plan.
Critical handholding and strategic approach for all procedural diligences by external agencies.
Well thought through decisions helped foreseeing the challenges and resolving it in timely manner.

OCL faced stress situation due to COVID-19 resulting in order cancellations, inventory losses & delay in monetisation of noncore assets etc
Comprehensive Debt Resolution involved correction in cashflow mismatch & Interim relief by securing interest moratorium and principal payments
Correction of working capital facilities by carving irregularities into separate Term Loan, Funding of Interest, Additional Working Capital funding & Reduction in margin for Drawing Power calculation

Ensured successful closure within tight timelines
Bridging trust deficit between borrower and lenders to ensure banking operations continue during restructuring process
Meticulous navigation through all non anticipated challenges during the execution
Critical handholding and strategic approach for all procedural diligences by external agencies
Fine balancing between the lenders and inter-se promoters group

SCML was facing persistent cashflow stress due to impaired viability in denim and garment business, which got accentuated due to COVID-19
Comprehensive Debt Resolution through Interest rate reduction by 4% – 5%, Interest holiday & principal deferment of 2 years & providing additional working capital support by relaxation in norms and extension of working capital cycle
Asset sale structured to serve twin objectives of conserving operational cashflows & to achieve early reversal of provisioning for banks
Factored extended timeline for sale of non-core assets, aiding in relatively higher realization, which is planned to be utilized for operations & debt reduction

Onboarded all lenders to participate in comprehensive restructuring irrespective of facilities and security structure
Building adequate working capital & liquidity support in to sustain operations till complete normalization
Improvised Resolution Plan to facilitate investment grade rating
One of the few cases where benefits of a deep restructuring exercise secured under RBI COVID Resolution framework
Perceived as a ‘Win-Win’ solution by lenders and the borrower, which was unresolved over past few years