Corporate Finance Services |
Financial Restructuring (FRE)
Transmission |
| BRESCON has been
advising to a major transmission line company.
Cost of fund has been brought down by 200
basis points and availed an additional moratorium
period of 4 years. The deal is concluded without
involving any additional convenient such as
infusion of funds by promoters, equity conversion,
etc |
|
| Power |
| BRESCON has recently
devised and successfully implemented financial
restructuring package for a power generation
and distribution company based at Eastern
India. In the first phase of restructuring,
fresh funds were infused to strengthen the
financials of the company with secured repayment
mechanism. This provided confidence to the
lenders and prevented the account with good
prospects from turning sub-standard. Subsequently,
the second round of restructuring was initiated
by BRESCON whereby re-schedulement of principal,
reduction in interest rate and funding of
interest was provided. |
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|
Textile |
| BRESCON represented
a major textile group in the business of weaving,
knitting and processing, and had effectively
overcome the negative sentiment for textile
industry in general, by substantiating the
upside potential for weaving, knitting and
processing sector in particular and linking
its growth with Garment Industry. This facilitated
into a change in banker’s lukewarm response
to a commitment. A creative and effective
solution has been devised for the mutual interest
of lenders and clients. |
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| Chemicals
|
| A leading chemical
manufacturing company in the field of Caustic
Chlorine awarded the mandate to Brescon for
restructuring its long-term liabilities exceeding
Rs.150 crores. The company currently incurs
an average cost of 16% on these borrowings.
Brescon formulated a novel restructuring proposal,
which on implementation would bring down the
cost of borrowing from the current level to
below 10%. Brescon successfully piloted the
initial structure of the scheme through CDR
cell (set up by RBI for quick restructuring
of viable units) where all the lenders have
agreed ‘in principle’ to consider
the suggested scheme. |
|
| Public
Sector Unit (Gujarat) |
| Brescon has been
awarded a mandate for liability restructuring
of a public sector undertaking managed by
Government of Gujarat with a debt of about
Rs. 800 crores. This mandate is a major challenge
for Brescon due to the size and complexities
involved. |
|
One
Time Settlement (OTS)
Real
Estate |
| Concluded an OTS
with lenders for a real estate developer,
where lender could get higher return than
their PLR on the property acquired under settlement
by availing value addition during the phase
of construction to completion as well as potential
rental income. This saved lenders from NPA
concerns and simultaneously concluded OTS
in the best way. Borrower on the other hand
could redeem its debt and saved future interest
expense. Win-win for both. |
|
| Pharmaceutical |
| Convinced and concluded
an OTS for a Pharmaceutical company, at principal
outstanding liability. In spite of heavy collaterisation,
lenders confidence could be retained to achieve
operational viability. |
|
Syndication: Green Field Project Finance
Satellite
Communication infrastructure |
| Acting as an advisor
for a green field project finance for satellite
communication infrastructure, first of its
kind in India. Brescon has recently arranged
term loan for the project on recourse to project
basis on a long-term basis with a spread over
11 years at 200 basis points above PLR. Usually,
green field projects of similar size acquire
funding at 350 basis points above PLR without
recourse to promoters/ corporate guarantees,
etc. |
|
| Pharmaceutical
|
| Advising a mid
sized pharmaceutical company: Arranged for
Rs.150 million term loan facility. Despite
of sluggish financial performance of the company
during the current year, Brescon has been
able to successfully convey the potential
upside of the company and generate comfort
of the lenders to lend funds at bank PLR on
a non-rated instrument. |
|
|
Debt
Swap
Hospitality
|
| Advising to a hospitality
company (5 star hotel) in Mumbai: Swapped
/ restructured portfolio worth Rs. 1,000 million.
Like most other players in the industry, current
financials were strained. The company was
facing classical vicious problem of interest
repayment and liquidity. Brescon's credit
enhancement solution through improved cashflow
mechanism helped it to generate sufficient
comfort for the lending institutions to reduce
interest cost by 300 basis points. |
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|
Textile |
Debt
Swap
A leading and profitable textile company was
saddled with a high cost borrowing of Rs 410
million availed from a financial institution
(FI) during the high interest regime. Brescon
devised a swap mechanism whereby the loan
was replaced with a significantly low cost
borrowing arranged from an investment institution.
The noteworthy feature of this swap was that
there were no repayment costs incurred by
the borrower while at the same time achieving
an interest benefit of 3 percent. The deal
was successfully structured by Brescon keeping
in view the current liquidity constraints
of the FI while assessing the current appetite
of the investment institution for acquiring
high quality assets
|
|
Advisory
Services
Gold
Refinery project |
Appointed as financial
advisors for a Gold Refinery project of Rs.3200
million, first of its kind in India.
VRS- Without Money! -
Advised a mid sized textile company on VRS
for 1,500 employees without major cash outflows
on the strength of promoter’s relationship
and emotional comfort with employees. Reduction
in the wages led to substantial savings of
nearly Rs.50 million annually to the company,
while VRS would be paid out of savings thereof.
Note: Name of the clients in not specified
in some cases for confidential reasons |
|
| Capital
Market Services |
Buy Back
Advisors
on buyback for Precot Mills Ltd
Takeovers
Managed
takeover of Sigma Compsoft Techologies Ltd
Managed takeover
of Vishal Electro Mech (I) Ltd
Public
Issues and Rights Issues
Lead
managed Public Issue for Adore Powertron Ltd
Lead managed
Rights Issue for Ceat Financial Services Ltd
Lead managed
Rights Issue for Vera Laboratories Ltd
Lead managed
Rights Issue for Makers Laboratories Ltd |
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