NPA Resolution Strategy
The firm was tagged as a Non-Performing Asset (NPA) after its toll projects ran late, and the banks had started recovery action.
We negotiated a One-Time Settlement (OTS) with the lenders and raised replacement capital from NBFCs that handle distressed accounts.
The old bank claims were cleared in full, which released the machinery held as security and let operations start again.
Understanding the situation
The infrastructure operator had been classified as NPA by two commercial banks after toll revenue fell short due to project delays beyond their control.
SARFAESI proceedings had been initiated, threatening seizure of critical earth-moving equipment and project assets.
The promoter's personal guarantees were at risk, and any delay in resolution would have triggered insolvency proceedings under IBC.
How we solved it
We conducted an independent forensic audit of the company's assets and liabilities to establish a credible recovery value for lenders.
We negotiated with both banks simultaneously, presenting a unified OTS proposal that offered better recovery than what liquidation would yield.
For the settlement capital, we approached specialized distressed-asset NBFCs and structured a replacement facility secured against the company's toll receivables.
We drafted the legal documents so everything closed at once: OTS payment, charge release, and the new facility going live in a single sitting.
Measurable outcomes
₹18Cr in legacy bank claims settled at a 38% haircut through OTS
All SARFAESI proceedings withdrawn and security charges released within 45 days
₹12Cr replacement working capital facility secured from a specialized NBFC
Operations restarted within 60 days, and the company returned to standard asset classification within 12 months
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