Asset reconstruction co ACRE buys 31% stake in Jayaswal Neco Ind

Bank of America-backed Asset Care Reconstruction Enterprise Ltd (ACRE) has picked up a 31% stake in Jayaswal Neco Industries Ltd thereby restructuring its debt worth INR 5,661 crore. The ARC is backed by global distressed funds and investors like Davidson Kempner Capital Management, Oaktree Capital and Ares SSG. The debt restructuring involved conversion of debt and allotment of 31.44 % equity shares of the company to the ACRE Trusts on a fully-diluted basis. This would be the first case of Competition Commission of India's (CCI's) clearance for acquisition of more than 25% equity shares of a company by an ARC on a pre-insolvency transaction. Khaitan & Co advised the company on the transaction. For the fiscal year ending March 2021, the company reported sales of INR 3,705 crore and a loss of INR 558 crore.