Deal Highlights:

• 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

Our Contribution :

• 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