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Debt Resolution
Debt Resolution
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SAM, Khaitan, CAM, Trilegal act on RattanIndia ₹6,574 crore Debt Resolution, first deal outside of NCLT

Bar & Bench

Distressed power producer Rattanindia Power Ltd has completed a debt resolution of ₹6,574 crore through a one-time settlement scheme, led by a consortium of investors including Goldman Sachs and Varde Partners.

The firm’s consortium of 12 lenders led by Power Finance Corp. Ltd (PFC) agreed to take a 38% haircut against their exposure of ₹6,575 crore to RattanIndia Power. Of the entire existing principal debt amount, ₹4,050 crore has been assigned to a new set of investors and lenders which includes Goldman Sachs and Varde Partners, through the Aditya Birla ARC Ltd, reported Mint.

Shardul Amarchand Mangaldas & Co advised the consortium led by Power Finance Corporation and the team was led by Partner Anoop Rawat, along with Senior Associate Sagar Dhawan, and Associates Vimal Asthana and Yalini Ravi.

Khaitan & Co advised Rattanindia Power Ltd and the team was led by Partners Abhimanyu Bhattacharya, Kumar Saurabh Singh, Aditya Cheriyan and Shruti Singh along with Principal Associates Oishik Bagchi and Rolwine Alva and Associate Riya Agicha

Cyril Amarchand Mangaldas advised Aditya Birla ARC Limited.

Trilegal acted for Varde Partners and Goldman Sachs and the team was led by Partner Aniruddha Sen and Yogesh Singh.

Aniruddha Sen led for the consortium of investors with support from litigation partner Tine Abraham and projects partner Neeraj Menon. Aniruddha’s team included Sidhanth Ramachandran, Associate, Srijan Sahay, Associate, Praveen Singh, Associate; Neeraj’s team included Gautam Chabra, Counsel, Akshay Shandilya, Associate; and Tine’s team included Akshay Puri, Associate.

Yogesh Singh was the lead partner for Värde and was supported by Mumbai corporate partner Ashwyn Mishra. Their team included Ankush Goyal, Counsel, Ramya Suresh, Counsel, Swapnil Phadnis, Senior Associate, Divye Bahadur, Senior Associate, Eklavya Malvai, Associate, Rohan Kohli, Associate; Diksha Maheshwari, Associate, Paridhi Srivastava, Associate and Rucha Kolte, Associate.

The is the first-of-a-kind scheme to have been closed under the RBI’s Prudential Framework for resolution of stressed assets issue in June, 2019 and the largest in terms of size outside the NCLT framework without any change in the existing management.

The process to find new investors was executed through a global Swiss challenge auction.

The transaction, in which foreign investors have replaced Indian lenders through a process of resolution outside the NCLT framework, has opened new doors for fresh capital to flow into the distressed Indian power sector, according to SAM & Co release.