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Trilegal, Amarchand on 25-bank record time $1.5bn debt restructure of Hind Construction

Banks: Re-constructing businesses since 1694
Banks: Re-constructing businesses since 1694

Trilegal advised ICICI Bank and a consortium of lending banks in the Rs 8,300 crore ($1.5bn) debt restructuring of Mumbai-based engineering and construction major Hindustan Construction Company (HCC) which was advised by Amarchand Mangaldas.

Trilegal Mumbai partner Ameya Khandge with associates Abhijeet Das and Siddharth Saxena acted on documenting the deal for ICICI Bank with a consortium of 25 banks and financial institutions, including State Bank of India, Punjab National Bank, and IDBI.

Amarchand Mangaldas Mumbai partners SH Bhojani and Amey Pathak acted for HCC which received Rs 1,500 crore in funding, in addition to the present exposure of the lenders’ consortium in the company.

Khandge said: “The main challenge in this deal was that it was implemented in a very very short time frame. It was drafted, done and finalised in twelve days. The [corporate debt restructuring consortium] finalised the security package, and signed the principal document on the same day.”

Lender pool diversity resulted in a number of rights over different asset classes of HCC, which posed a challenge in structuring and implementing the security package, according to Trilegal.

Khandge told Legally India that while the master restructuring agreement was in place, the process of implementing the security package would continue over the next four months.

HCC reported a net loss of Rs 54 crore in the last quarter of the 2011-2012 financial year, as against a net profit of Rs 23 crore one year previously, according to India Finance Bazaar.

The net loss for the entire 2011-12 financial year was Rs 222.25 crore on revenues of Rs 3,988 crore. The order book in 2011-12 fell 44 per cent year-on-year and the outstanding order book in March 2012 was Rs 15,336 crore, according to the Indian Express.

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