Acquisition of stressed assets
After legal and financial due diligence Company acquires stressed assets from banks, notified NBFCs & financial institutions either through public auction or bilaterally on agreed terms. Acquisitions are through a Trust set up as a special purpose vehicle. The Company acts as Trustee of such Trust. Acquisition can be of any non performing loans including large, mid corporate, SME as well as retail pool of stressed assets.
Company provides tailor made acquisition structures comprising of optimal mix of cash and Security Receipts to seller banks and financial institutions seeking to unlock the maximum value out of the stressed assets. Company also acts as Resolution Applicant / Financial Sponsor to acquire the stressed assets under the provisions of Insolvency and Bankruptcy Code, 2016.
Resolution of the acquired stressed assets
After acquisition of Stressed Assets detailed resolution strategy is drawn for each asset which may include resolution by way of settlement, restructuring, takeover of management of borrower, disposal of secured assets, conversion of debt into equity etc. The selection of resolution strategy primarily depends on the debt repayment history & management capability of the borrower, commercial viability of business, quality of products, valuation of the underlying security, and litigation status.
Company has extensive experience & resolution capabilities for timely resolution to maximize the returns to the investors. Pursuant to RBI Guidelines, Company also provides Restructuring Support Finance (RSF) to preserve economic value and revive operations of deserving business units.