Case Studies


Case Outline

  • A leading integrated steel conglomerate was confronted with a debt burden of ~ INR 90Bn
  • Company’s performance was adversely hit due to certain macro-economic factors viz. global oversupply, continuous fall in commodity prices, unfair duty structure and adverse currency fluctuation
  • Above factors adversely affected market demand and margins, leading to idle capacities and cash losses.
  • Company had already undergone restructuring twice under CDR mechanism
  • Absence of a comprehensive solution to address the expected cumulative cash flow deficit over the short to long term period, estimated ~ INR 20Bn.
  • Company’s major expansion project was underway.


  • Industry downturn coincided with company’s expansion plan.
  • Net worth on the verge of turning negative with consequent referral to BIFR

Normal Solution

  • Would have rendered company’s account a non performing asset with the lenders
  • Banks faced with the possibility of huge provisioning, in view of the account being reckoned as sub-standard from the date of first restructuring.
  • Value destruction for the shareholders
  • Long term viability would have become extremely difficult.

Brescon Value Add

  • Debt-cum-business reorganization scheme involving corporate restructuring worked out to deleverage the company, leverage idle capacities, optimize operations and ensure long term stability
  • Trifurcation of business into 3 separate entities on slump sale basis and assigning of debt, based on end use sustainability.
  • Aligning of the project loan over the requisite tenures ensuing the viability and as permissible under regulatory guidelines.


  • Enabled structuring/ refinancing of debt at better terms in demerged entities thereby resulting in reduction of costs and improve creditworthiness
  • Ensured sustainability of debt workout without further sacrifices on the part of lenders/ banks.
  • Unlocked value for shareholders, including lenders for their shareholding

Innovative recasting of business to revive the business, thereby creating value for shareholders, without additional sacrifices by lenders.