Case Studies


Case Outline

  • 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

Normal Solution

  • 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.

Company well poised for turnaround and significant growth prospects going forward