Case Studies


Case Outline

  • One of the leading vertically integrated bedding providers in India, engaged in spinning yarns, weaving fabrics and manufacturing textiles
  • Exports to over 45 countries with it being one of the leading suppliers of home textiles to USA
  • Company’s operations were hit due to subdued global market alongwith increasing cotton prices and rupee appreciation
  • Capacity utilization reached an all time low of 25%


  • Experienced a disproportionately higher one time forex loss of ~ INR 1.5Bn, against revenues of ~ INR 2.8Bn.
  • Substantial net worth erosion resulted in high DER of 8:1
  • Promoters’ were unable to induct a new financial investor
  • Criticality of enhancing of core working capital to run at optimum levels

Normal Solution

  • Restructuring of debt
  • Induction of a strategic investor
  • Poor valuation due to precarious financial position and industry scenario

Brescon Value Add

  • Addressed the problem of one time forex loss by converting the same into term loan
  • Due to inadequate security cover, innovative structure conceptualized which enabled securing of additional funds ~ INR 1Bn for working capital, by leveraging assets of one of its subsidiaries.


  • With additional WC limits, company could tap the rising market opportunities by fully utilizing its capacity
  • Resolution enabled the company to outperform the projections and exit from CDR before stipulated time
  • Spectacular improvement in the financial performance and market capitalisation with EBITDA going up by over 20x and market capitalisation by over 70x during the period of 9 years ie. from prior to restructuring to exit from CDR.
  • Derisking of loan assets for the lenders alongwith recovery of the recompense amounts.

Successful turnaround of a company facing deep financial turmoil & promoters looking to exit the business