Saraf And Partners Acted As Legal Counsel For Lenders Led By Punjab National Bank In ₹5650 Cr Asset Assignment

Saraf And Partners Acted As Legal Counsel For Lenders Led By Punjab National Bank In ₹5650 Cr Asset Assignment

Saraf and Partners, acted as the legal counsel for a consortium of 21 lenders led by Punjab National Bank (PNB), in a significant assignment of stressed assets totalling INR 5650 crore involving Simplex Infrastructures Limited.

The assignment pertained to fund-based and non-fund based facilities amounting to approximately INR 5650.37 crore availed by Simplex Infrastructures Limited, a Kolkata-based listed entity with a rich legacy dating back to 1924. Simplex is renowned for its involvement in diverse sectors such as transport, energy & power, mining, buildings, marine, and real estate.

The assignment involved the transfer of stressed assets to the National Asset Reconstruction Company Limited (NARCL). This initiative aligns with recent governmental efforts, led by the Finance Ministry, to transfer stressed assets worth ₹1-lakh crore to NARCL from state-owned banks by March 2024.

The legal team at Saraf and Partners provided comprehensive assistance to the lenders throughout the assignment process. This included conducting and completing the Swiss challenge process, preparing essential documents such as advertisements, invitations for bids, bid process documents, and information memorandums, and resolving queries from a legal and compliance perspective.

Furthermore, the team was instrumental in reviewing, negotiating, and finalizing joint assignment agreements, offer documents, trust deeds, and various ancillary documents required for the transfer between NARCL and the lenders. They actively participated in complex negotiations with the lenders, NARCL, non-convertible debenture (NCD) holders, and other stakeholders to ensure the smooth completion of the assignment.

The assignment presented several challenges, particularly concerning the structuring of facilities and NCDs, necessitating close coordination with the 21 lenders, debenture holders, NARCL, and other stakeholders. Despite these complexities, Saraf and Partners successfully structured the deal and negotiated with all parties involved for the assignment of facilities availed by Simplex Infrastructures Limited.

The team at Saraf and Partners, led by Abir Lal Dey, Partner, demonstrated exceptional expertise and dedication throughout the process, reaffirming the firm's commitment to providing top-tier legal services in complex financial transactions.