DK Business Network
Khaitan & Co played a pivotal role as the legal advisor to Simplex Infrastructures Limited in a landmark ₹10,295.47 crore debt restructuring with the National Asset Reconstruction Company Limited (NARCL). This strategic move underscores Simplex’s commitment to overcoming financial challenges and ensuring long-term stability.
Details of the Restructuring Plan
The restructuring aligns with the RBI’s Prudential Framework for Resolution of Stressed Assets. It aims to streamline Simplex’s operations and address liquidity concerns. The plan includes three key steps. First, a portion of the debt was converted into 15% equity shares issued to NARCL. Second, another portion was rescheduled. Finally, the remaining debt repayment was extended, based on recoveries from disputed claims and receivables. NARCL had earlier acquired this debt from various financial institutions. This allowed for a consolidated resolution plan. Founded in 1924, Simplex Infrastructures Ltd. has a strong legacy. It has completed over 2,600 projects across sectors like Transport, Power, Mining, Marine, and Real Estate. The Khaitan & Co team was led by Partners Kumar Saurabh Singh and Rahul Chakraborti. They were supported by Principal Associate Riya Agicha, Senior Associate Sarika Jhanwar, and Associates Kartikey G and Sanjali Rupnawar.
A Step Toward Financial Stability
This restructuring marks a significant step for Simplex in managing its financial challenges. With Khaitan & Co’s legal expertise, the company is better positioned for stability and growth in the future.
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