Our Portfolio
Helios Photo Voltaic Limited (HPVL)
Background: Helios Photo Voltaic Limited (HPVL) was promoted by the late Mr. Deepak Puri and his family. It commissioned a 5 MW solar power plant in Jodhpur in November 2011, with a Power Purchase Agreement (PPA) with NVVN valid until November 2036. HPVL also operated a solar cell/module unit in Greater Noida, which has been non-operational since November 2017.
Acquisition: NARCL on March 3, 2023, acquired 73.4% of HPVL’s debt from banks including PNB, SBI, Union and Canara. HPVL was admitted into the Corporate Insolvency Resolution Process (CIRP) by NCLT Delhi on January 11, 2024
Value Maximization Efforts: IDRCL, in collaboration with the RP, implemented several measures to maximize value included operational improvements at the solar power plant, such as upgrading the earthing system, repairing foundations, and inviting bids for repowering 750 kW of damaged modules. Additionally, IDRCL closely monitored cash flows, reduced manpower costs, and adopted efficient practices. The joint marketing efforts with RP wherein we have reached out to 1,000+ potential bidders resulted in 28 EOIs, leading to 15 comprehensive resolution plans and 2 asset sale bids
Conclusion: The CoC approved resolution plan is submitted t NCLT for approval. The value maximization efforts of IDRCL are anticipated to generate significant returns of 1.4x SR holders
Jaypee Infratech Ltd
Background : Jaypee Infratech Limited (JIL) was established in 2007 as a special purpose vehicle for the Yamuna Expressway Project. The company holds development rights on 6,175 acres of land along the expressway, with 3,502 acres currently unutilized. JIL entered corporate insolvency resolution process in August 2017, and Suraksha group was subsequently approved as the Successful Resolution Applicant (SRA) by committee of creditors (CoC)
Acquisition : NARCL acquired 94.38% of JIL’s outstanding debt to financial institutions on January 20, 2023. The acquired principal outstanding amounted to INR 7,770 Cr, and NARCL now represents 40.82% of total admitted claims in NCLT.
Resolution Strategy : The primary strategy involves monetizing allocated land parcels as per the NCLT-approved resolution plan. This includes 2,372 acres allocated to assenting financial creditors (AFCs) including NARCL, and the redemption of INR 1,280 Cr in non-convertible debentures over 10 years.
Value Maximization Efforts : Efforts to maximize value include finalizing the 2,372 acres land parcel allocation with CBRE’s assistance and developing a transaction structure for transferring beneficial interest in land to AFCs. IDRCL (on behalf of AFCs) and SRA have mutually entered into a set of 8 documents for implementation of the resolution plan. Further, an asset management company and International Property Consultants (IPC) would be appointed for land monetization. Ongoing litigations and appeals related to the resolution plan are being closely monitored.
Conclusion : The resolution plan implementation is moving forward, with the SRA agreeing to adopt May 24, 2024 as the approval date. Next steps include finalizing appointing advisors (IPCs) for land monetization and developing a go-to-market strategy. While some litigation continues, major issues have been settled, and CRISIL has maintained an RR1 rating, indicating a 100-150% recovery potential of the acquisition price.
Parenteral Drugs (India) Limited
Background: Parenteral Drugs (India) Limited (PDIL) is a pharmaceutical company incorporated in 1983, specializing in manufacturing IV fluids, formulations, ophthalmic solutions, and sterile injectable water. The company operates two manufacturing facilities in Kasrawad, Madhya Pradesh, and Baddi, Himachal Pradesh. The company’s Kasrawad unit has been leased out to IHL Lifesciences Pvt Ltd since February 2023. PDIL was admitted into the Corporate Insolvency Resolution Process (CIRP) on February 9, 2023.
Acquisition: In October 2023, National Asset Reconstruction Company Limited (NARCL) acquired the debt of PDIL amounting to INR 1,158 crore from Punjab National Bank (PNB) and State Bank of India (SBI)
Value Maximization Efforts: To maximize recovery, the RP and IDRCL employed several strategies, including the engagement of a Pharma expert to aid in the preparation of the Information Memorandum and marketing efforts. After multiple rounds of negotiations, the SRA revised their offer from INR 19 crore to INR 90 crore
Conclusion: The plan ensures full redemption of SRs and is considered a positive outcome for PDIL’s CIRP. NCLT has approved the plan on 16-Jan-25
Road Assets
- Evaluation of stress road projects is challenging – the projects are based on contracts agreements, there are no tangible collaterals that can be easily valued.
- Long pending stress in road projects are mainly in terminated concession agreement. Recovery for lenders in such cases is mainly out of arbitration claims that are payable as per concession agreement but disputed by parties.
- Logical conclusion of such dispute resolution takes time and carry certain level of uncertainty. Due to these reasons, very few institutions/ investors evaluate such claims.
- Moreover, authorities like NHAI have released claims proceeds either under conciliation process or post conclusion of legal process as per Arbitration and conciliation Act
- Evaluation of claims require thorough understanding of concession agreement read along with other financing documents like common loan agreement, substitution agreement etc. Further, evaluation warrants proper perusal of legal documents viz: Statement of Claims (SoC), Statement of Defense (SoD) and other valid documents justifying the reasonability of various claims and counter claims
- Our roads team brings extensive experience of project finance that helps us understand the intricacies of Concession Agreement, helping us evaluate stressed road assets and value them according to their potential
- We have a defined process for appraisal for these complex road assets, empaneled reputed consultants that provide valuable insights in evaluation. Our team also holds discussion with authorities like NHAI/ PWD to get preliminary understanding from such counter parties
- We have acquired 9 road assets having exposure of ~INR 17,000 cr
Wind World India Limited
Background: Wind World India Limited (WWIL), incorporated in 1993 and headquartered in Mumbai, was admitted under Corporate Insolvency Resolution Process (CIRP) in February 2018. Since 2017, WWIL’s manufacturing operations in Daman have been non-operational. However, Company continues to provide Operations & Maintenance (O&M) services of power generation equipment (~5,959 WECs with 4,504 MW capacity) and owns Independent Power Producer (IPP) assets (98 WECs with 64 MW capacity) and power evacuation infrastructure of 225 MVA. The company’s subsidiaries also have IPP assets (649 WECs with 490 MW capacity) and power evacuation infrastructure of 3,602 MVA
Acquisition: In March 2024, the National Asset Reconstruction Company Limited (NARCL) acquired INR 3,763 crore of WWIL’s debt from an IDBI-led consortium, which constituted 79.89% of WWIL’s total financial debt of INR 4,711 crore. This acquisition has positioned NARCL as the major creditor, with the responsibility of representing the Committee of Creditors (CoC) in the ongoing resolution proceedings.
Value Maximisation Efforts: As WWIL is into CIRP, the cash control and management is in the hands of the RP. Our efforts are focused on achieving an outcome that maximizes recovery for creditors while preserving the company’s value as swiftly as possible.