Khaitan & Co advises Simplex Infrastructures on ₹10,295 crore debt restructuring

Khaitan & Co acted as the legal adviser to Simplex Infrastructures Limited in relation to restructuring of its outstanding debt of ₹10295.47 crore owed to National Asset Reconstruction Company Limited.

The firm advised Simplex he on the transaction structure; and on reviewing, negotiating, and finalising the transaction documents.

The transaction team consisted of Kumar Saurabh Singh (Partner), Rahul Chakraborti (Partner), Riya Agicha (Principal Associate), Sarika Jhanwar (Senior Associate), Kartikey G (Associate) and Sanjali Rupnawar (Associate).

As part of the debt restructuring, (i) a part of the debt was converted into 15% equity shares of the Company and allotted to NARCL; (ii) another part of the debt has been restructured by rescheduling repayment; and (iii) the balance debt is payable out of realisation from claims/receivables in dispute over an extended period of time. NARCL had acquired the debt of the Company from various banks and financial institutions.

The move comes as the company seeks to streamline operations and improve liquidity. Lenders have been approached under the Reserve Bank of India’s Prudential Framework for Resolution of Stressed Assets.

Simplex Infrastructures Ltd. is a diversified company established in 1924 and executing projects in several sectors like Transport, Energy & Power, Mining, Buildings, Marine, Real Estate etc. The Company has been closely associated with the country’s infrastructure building with over 2600 completed projects spanning almost all the gamut of construction industry.

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