Case Studies

Pharmaceuticals and Healthcare

Case Outline

  • Experts in chemical synthesis, fermentation and enzymatic technologies besides owning two US FDA approved facilities and producing anti-asthmatic, anti-Cholesterol etc under contract manufacturing
  • Negative EBITDA due to sudden fall in revenues owing to change in US Regulations
  • Increase in power cost due to turbine failure in Company’s plant
  • Buying sugar plants as backward integration backfired as state Govt suddenly changed the policy
  • Company had already gone through restructuring twice
  • Lenders revoked the Scheme granted and initiated proceedings to take possession of assets


  • Protection of the Going Concern Value (GCV) of the company particularly, various international regulatory approvals such as the USFDA, EDQM, etc
  • Mechanism to fund mounting labour, and statutory dues.
  • Provide an acceptable exit route to the lenders
  • Promoters being technocrats, needed support in business acumen

Normal Solution

  • Slump sale of assets would have fetched very low value to pay off the debt leading to no value realization for the promoters and sub-optimal recovery for the banks
  • Buyer worried about the contingent and statutory liabilities.

Brescon Value Add

  • Front-ended the process of One-Time Settlement(OTS) with seven banks at levels, fair to both the promoters and the lenders.
  • Arranged for induction of a credible strategic investor with significant minority stake on board, because of long standing relationships
  • Investment from Brescon to part fund the OTS


  • Company could recommence operations
  • Preserved the business value by protection of regulatory approvals
  • Access to plant ready for supply, saving time required in construction and obtaining fresh approvals.
  • Derisking and optimisation of recovery for the lenders in an Account / asset that was at the brink of being written off.
  • Increase in market capitalization by more than 6x in 2 years time

Chartered good growth on the back of quick stabilization of operations and value upside