Jayaswal Neco Industries’ Debt Restructuring

Khaitan & Co advised Jayaswal Neco Industries Limited on the deal.

Jayaswal Neco Industries Limited announced the restructuring of its outstanding debt of INR 5661 crores owed to various trusts managed by Asset Care & Reconstruction Enterprise Limited (“ACRE”), an asset reconstruction company backed by marquee global distressed funds/ investors like Bank of America, Davidson Kempner Capital Management, Oaktree Capital and Ares SSG, in accordance with Section 9 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. This is one of the largest pre-insolvency restructurings and the Company was in the Reserve Bank of India’s second list for commencement of insolvency by December 2017. The debt restructuring, amongst others, involved conversion of debt and allotment of 31.44% equity shares of the Company to the ACRE Trusts on a fully diluted basis. This would also be the first case of Competition Commission of India’s clearance for acquisition of more than 25% equity shares of a company by an asset reconstruction company on a pre-insolvency transaction. 

The Khaitan & Co team consisted of Partner Kumar Saurabh Singh (Picture), Rahul Chakraborti (Partner), Riya Agicha (Senior Associate), Saumya Agarwal (Associate) with assistance from the following:
On competition law related aspects: Rahul Singh (Partner), Anisha Chand (Partner), Alisha Mehra (Associate) and Yatharth V Singh (Associate). On capital market related aspects: Aditya Cheriyan (Partner), Abhishek Dadoo (Partner), Oishik Bagchi (Principal Associate), Gaurav Malhotra (Principal Associate) and Anvita Mishra (Senior Associate).

Involved fees earner: Saumya Agarwal – Khaitan & Co.; Riya Agicha – Khaitan & Co.; Oishik Bagchi – Khaitan & Co.; Rahul Chakraborti – Khaitan & Co.; Anisha Chand – Khaitan & Co.; Aditya Cheriyan – Khaitan & Co.; Abhishek Dadoo – Khaitan & Co.; Gaurav Malhotra – Khaitan & Co.; Alisha Mehra – Khaitan & Co.; Anvita Mishra – Khaitan & Co.; Kumar Saurabh Singh – Khaitan & Co.; Rahul Singh – Khaitan & Co.; Yatharth V Singh – Khaitan & Co.;

Law Firms: Khaitan & Co.;

Clients: Jayaswal Neco Industries Limited ;

Author: Sonia Carcano