Case Studies


Case Outline

  • One of the largest real estate developers with presence in India and Dubai with significant land bank
  • Hit by slow demand post global financial crisis of 2008 and the consequent dried up financing
  • Debtors realization stretched substantially with a drop in bookings and rising cancellations
  • Attempts to monetise land parcels to meet impending debt obligations of ~ INR 4Bn, failed due to abysmally low valuations being offered
  • Defaults in payments, eventually, resulted in the company being classified as a non performing asset


  • Ongoing 36 projects needed funds for completion
  • Additional funding from banks’ other sources did not have any visibility
  • Low probability of lenders to consider restructuring due to high risk weightage attached to the sector

Normal Solution

  • Distress sale of the incomplete projects at rock bottom valuation
  • Could have resulted in :
    • Value destruction for shareholders
    • Write down of the value of debt by the lenders

Brescon Value Add

  • Positioned the company credentials in the right perspective and convinced lenders about the future potential of the company
  • Addressed issues “project by project” and worked out the funding requirement based on cash flows for each of the 36 projects
  • Devised tailor-made solutions for each of the 22 lenders, based on their exposure, cost, sacrifice, and security
  • Convinced lenders to provide further financial support to complete the ongoing projects.


  • Increase in shareholders’ wealth by 5x within 2 years
  • Credit rerating enabled raising equity of ~ INR 5Bn within a year, post restructuring and reduce debt, improving its asset cover and solvency.

One of the few success stories of restructuring in real estate sector, immediately post 2008 global crisis