Shardul Amarchand Mangaldas and Co advises consortium led by Power Finance Corporation Limited

December 31, 2019

Shardul Amarchand Mangaldas & Co (SAM & Co) advised the consortium led by Power Finance Corporation Limited. The SAM & Co. team advised on every aspect of the transaction with RattanIndia Power Limited (RIPL), RattanIndia Infrastructure Limited (RIL) and RR Infralands Private Limited (RRIL), from the very beginning, including structuring of the deal, advising on the swiss challenge process drafting, negotiating and finalizing all documents with the counter parties till the final clearance for the remittance of money was given to the lenders. The total value of the deal is INR 4,050 Crores.

RIPL, RIL and RRIL approached the Lenders with a proposal, to settle the dues owed by RIPL to the lenders of RIPL up to an amount of approximately INR 8,000 crores.

The process to find new investors was executed through a global Swiss challenge auction. The first-of-its-kind transaction, in which foreign investors have replaced Indian lenders through a process of resolution outside the NCLT framework, which has opened new doors for fresh capital to flow into the distressed Indian power sector and is largest in terms of size outside the NCLT framework without any change in the existing management.

This is the first successful scheme to have been closed under the RBI’s Prudential Framework for resolution of stressed assets issue in June this year.

The SAM & Co team was led by Anoop Rawat, Partner, Sagar Dhawan, Senior Associated, Vimal Asthana, Associate and Yalini Ravi, Associate.