Acquisition of Textile Company with Management Challenges
About the Client
A medium-sized textile manufacturing company facing management challenges.
Challenges
Absence of succession planning, leading to operational disruptions and uncertainty among stakeholders.
Deal Objective
To facilitate the acquisition of the Company by a strategic investor to address the critical issue of management succession, stabilize operations, and ensure the Company's continuity in the textile industry.
Background
Considering our Client’s established brand reputation, manufacturing capabilities, and market presence, WCSPL conducted an extensive assessment and initiated a search for strategic investors, private equity firms, or industry players.
Westlab facilitated negotiation terms between our client and the potential investor to determine the purchase price, deal structure, and form of consideration.
The acquisition deal was structured with a significant portion of the consideration comprised of equity in the acquiring entity, providing our clients’ existing shareholders with an opportunity to participate in the future growth and success of the combined entity.
Acquisition of Textile Company with Management Challenges
About the Client
A medium-sized textile manufacturing company facing management challenges.
Challenges
Absence of succession planning, leading to operational disruptions and uncertainty among stakeholders.
Deal Objective
To facilitate the acquisition of the Company by a strategic investor to address the critical issue of management succession, stabilize operations, and ensure the Company's continuity in the textile industry.
Background
Considering our Client’s established brand reputation, manufacturing capabilities, and market presence, WCSPL conducted an extensive assessment and initiated a search for strategic investors, private equity firms, or industry players.
Westlab facilitated negotiation terms between our client and the potential investor to determine the purchase price, deal structure, and form of consideration.
The acquisition deal was structured with a significant portion of the consideration comprised of equity in the acquiring entity, providing our clients’ existing shareholders with an opportunity to participate in the future growth and success of the combined entity.
One Time Settlement for Textile Company in Financial Distress
About the Client
A medium-sized textile manufacturing company facing financial distress
Challenges
Lack of bank funding, inexperienced management, inability to secure capital infusion, and sudden demise of the promoter, resulted in the Company slipping into the Non-Performing Asset (NPA) category.
Deal Objective
To proactively arrange One Time Settlement (OTS) so that our client could effectively resolve its outstanding dues and restructure debt obligations.
Background
WCSPL conducted a comprehensive assessment of the client’s financial position, including an analysis of its assets, liabilities, cash flow projections, and debt repayment capacity.
We engaged in negotiations with creditors, including banks, financial institutions, and trade suppliers, to reach a mutually agreeable settlement that addressed the Company’s outstanding liabilities while providing relief to creditors.
We developed a detailed settlement plan and obtained approval for OTS from the authorities.
We also prepared the necessary documents required for settlement purposes, ensuring legal and regulatory requirements.
The Business Accruals also will be available to meet the Working Capital Requirements, including Interest expenses and Future Loan Repayments.
Secured Funding for NBFC with Diverse Product Portfolio
About the Client
A well-established NBFC with a diverse product portfolio mix of Secured Loan (Gold Loan and Loan against Property) and Business /Unsecured Loan.
Challenges
The NBFC required working capital to carry out its onward lending.
Deal Objective
To arrange additional funding for our client to expand their lending activities and support its onward lending initiatives.
Background
WCSPL analyzed the NBFC’s current financial position, growth projections, loan portfolio, and lending segments.
We explored various funding options and engaged in negotiations with potential lenders, including banks, financial institutions, and investors, to secure funding at competitive terms and structure financing arrangements aligned with the NBFC’s strategic objectives.
WCSPL also prepared the necessary documentation to facilitate the funding process and ensure regulatory compliance.
Successful Navigation of Over-Leveraged Company through the Insolvency Process
About the Client
A Transformation Towers Company faced financial distress due to over-leverage, with a debt size of INR8900 crores.
Challenges
The Company was burdened with massive debt, operational challenges including interlocking of receivables, low recovery rates, stockpile accumulation, and labor disputes.
Deal Objective
To successfully navigate the Company through the insolvency process.
Background
The Company’s inability to service its debts led to insolvency proceedings initiated under the National Company Law Tribunal (NCLT).
The Corporate Insolvency Resolution Process (CIRP) commenced, with a tight timeline of 3 months mandated by regulatory authorities.
We conducted a thorough assessment of the Company’s financial position, identifying key areas of concern and opportunities for improvement.
Despite the challenges and complexities, WCSPL’s expertise and strategic interventions led to the successful resolution of the Company’s insolvency proceedings.
The NCLT decision, which came after a prolonged period of 3 years, ultimately approved the resolution plan, allowing the Company to emerge from insolvency and continue its operations under new ownership.
Financing a multinational Defense Company
