- One of the leading companies providing broadband internet services to retail and enterprise customers in India
- Company promoted by telecom veterans and backed by marquee equity investors
- Awarded license for Broadband Wireless Access/ 4 G spectrum at a cost of ~ INR 10B.
- Undue delay in the tie-up of loans delayed the roll out of services as a result impacting the induction of a new financial investor.
- Negative perception of lenders due to the sector being mired in the controversy relating to spectrum allocation.
- Promoters were unable to raise fresh funds from existing investors/ new financial investor
- Restructure company’s debt under the CDR platform
- CDR platform would have delayed resolution of debt thereby the account turning into a non performing asset (NPA)
- NPA tag would have adversely impacted equity raising efforts of the company.
Brescon Value Add
- Strategised the debt resolution while taking care of the investors’ interest
- Negotiated debt realignment on bilateral basis rather than under CDR, in order to preserve brand image, keeping in view further rounds of equity funding.
- Conserved cash flows of ~ INR 4 bn through securing interest and principal moratorium for 2 years besides interest cost reduction.
- Convinced with company’s turnaround, further equity committed by the existing investors.
- Risk of the account turning into non performing asset was avoided.
- Equity value that was at risk of erosion pre-restructuring rose by ~ 70 % post-restructuring.