Exclusive financial advisor to Bannari Amman Spinning Mills Ltd. (BASML)



June 2021




INR 5,420 MN

Deal Value

Exclusive financial advisor to Bannari Amman Spinning Mills Ltd. (BASML)

Deal Highlights:

  • 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

Our Contribution:

  • 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.