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Ares SSG-led Neighborhood signs debt recast take care of Jayaswal Neco

Mumbai: The Ares SSG Capital-led consortium signed a debt restructuring take care of

after the Supreme Court docket allowed withdrawal of the insolvency petition towards the distressed steelmaker, of us responsive to the construction told ET.

The deal involves restructuring ₹5,700 crore loans whereas Sources Care and Reconstruction Enterprises (ACRE) – an asset reconstruction company – got a 31% fairness stake. Promoter Ramesh Jayaswal and his family’s stake turned into once diminished to 48% from 69% held earlier. ACRE is majority-owned by Ares SSG Capital. The last 21% is held by the general public.

End to ten traders, including Oaktree Capital, Centerbridge Companions, Financial institution of The United States, Broad Height Capital, Davidson Kempner, PAG and Arkkan Capital, are new lenders to the steel company. Alvarez & Marsal told the consortium on the restructuring of the debt.


Ares SSG-led Group Signs Debt Recast Deal with Jayaswal Neco

Over the last three years, Ares SSG Capital led-traders got Jayaswal Neco’s total loan ebook from domestic lenders corresponding to

,

and

, offering 70-75 paise on their one rupee loan.

“This (Jayaswal Neco case) turned into once a posh restructuring that concerned a pair of diverse stakeholders, including ten global and regional traders (funds), four residual lenders (banks), company management, shareholders and their advisors. Given this complexity and the pandemic, negotiations had been protracted,” said Nikhil Shah, managing director of Alvarez & Marsal.

Jayaswal Neco might per chance per chance per chance not be reached for comments.

As per the debt recast, 60% of the debt turned into once deemed a sustainable loan. Of the last loan, a segment of it – almost ₹880 crore – turned into once converted into fairness and a share accurate into a interval of time loan said a particular person responsive to the transaction. The promoter has pledged total fairness with lenders, the identical particular person said.

Jayaswal Neco, which fought a four-year real fight to thwart financial raze, turned into once amongst the 2nd listing of 28 companies issued by the Reserve Financial institution of India in December 2017. RBI wanted lenders to blueprint financial raze court docket for the resolution of these companies. Though

had filed a petition, the company never got admitted attributable to a series of litigations.

Each and every bank individually offered its loans to ACRE led traders within the last three years. Consequently, the ARC got approval from the apex court docket to withdraw the application for insolvency court docket cases.

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