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Other Business Opportunity
Insolvent large Indian infrastructure company seeking investment

Mandate ID: IN-11-SRV-13-1903-7
Transaction Type:
Other Business Opportunity

Industry: Infrastructure


Sector: Construction


Country of Origin: India |


Target Areas: Worldwide


Business Review

I) ABOUT THE COMPANY

ABC Ltd (ABC) is the flagship company of the XYZ Group. ABC is a public listed company. They have created a niche in infrastructure projects. ABC was incorporated in the year 1995, and is headquartered in Mumbai, Maharashtra, India.

II) BOARD OF DIRECTORS

ABC had a Board of 4 Directors as in FY 2017-18. The Board now stands dissolved and a Resolution Professional has now been appointed to look into the affairs of the Company, ABC. The Resolution Professional is now examining options for reviving the Company, ABC.

III) ABC SECTORS

ABC operates in the following sectors:

1. Engineering, procurement and construction (EPC) segment and public-private partnerships (PPP).

2. Designing, engineering and execution/construction of the following projects:

i. Complex and integrated water transmission and distribution projects,
ii. Water treatment plants,
iii. Elevated and underground reservoirs,
iv. Mass housing projects,
v. Commercial complexes,
vi. Pre-cast design and construction,
vii. Road construction,
viii. Real estate and metro projects including design and construction of railway stations.

3. Water sourcing solutions covering the development of bulk water supply, transmission main, augmentation of existing water supply schemes for urban and rural, and water distribution and metering solutions.

IV) PROJECTS OF ABC

(1) Special Projects:

 Passenger Water transportation: This connects Greater Mumbai with far situated Suburbs and Main Land on Navi Mumbai side.
 Multilevel Car Parking: Parking for Delhi Metro Rail Corporation on Airport Metro Corridor at New Delhi Station. The total floor area of the Project is about 5.35 lakhs Sq. ft.

(2) ABC - Infra Division - Water Supply and Environmental Engineering

(3) ABC - Infra Division – Buildings:

Imperial Height at Oshiwara, Residential Building for Indian Railway Welfare Organization, Lanco Mall at Hyderabad

(4) ABC - Infra Division – Airports:

Amritsar Airport, Delhi Arrival Terminal, Ahmedabad Airport

(5) ABC - Infra Division - Railway Stations

(6) Delhi Metro Rail Corporation (DMRC):

DMRC Project CC-23: Kalkaji to Hauz Khas (Magenta Line) DMRC Project CC-18: South Extension to R K Puram (Pink Line)

V) CORPORATE INSOLVENCY RESOLUTION PROCEEDINGS

The National Company Law Tribunal (NCLT), Mumbai has recently admitted a Petition under Section 7 of the Insolvency and Bankruptcy Code 2016 as amended thereof (the Code) filed by a leading Bank in India to initiate corporate insolvency resolution process (CIRP) against ABC, in 2019, as ABC owed an amount of Rs. 6,37,19,13,438.06 (approximately Rupees Six Hundred and Thirty-Seven Crores only), which is approximately USD 92,216,261.97 (approximately USD Ninety-Two Million only) to the Bank.

As per the Balance Sheet as on 31.03.2018 of ABC Company, the Company is showing a Liability of Rs. 4,13,209.93 Lakhs, which is approximately USD 600,299,155.29 (approximately USD Six Hundred Million only). It is also showing Assets worth Rs. 4,13,829.93 Lakhs, which is approximately USD 601,199,872.94 (approximately USD Six Hundred and One Million only). The Company has assets, both movable (construction machinery) and immovable, across India. However, these figures are indicative by nature and the final figures will be given by the Resolution Professional (RP) who is looking into the insolvency of ABC Company.

So far, the NCLT has appointed an RP to carry out the functions as mentioned under the Code and has also caused a public announcement about the initiation of CIRP against ABC, so that claims against ABC may be submitted to the RP. The RP will now examine the claims and will entertain interested parties who want to bail out/take over the Company.

Financial Information
Highlights

At this stage, any investor can look at a bail out/takeover of the Company, ABC. In either case, the investor will have to submit an expression of interest. This expression of interest will be shortly invited by the RP. Once the RP receives the expression of interest, he will share the information memorandum that will carry all details of the assets and liabilities of ABC Company including the valuation.

We, as the Legal Team, can facilitate the entire process. Please note that the insolvency process is time bound and any interested party must act with speed as there will be several aspects before finalization of a takeover or an investment in the Company.

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