PE Fund Investments
Davidson Kempner takes control of Adhunik Power; Edelweiss ARC exits recovering Rs.1,250-Cr
Edelweiss Asset Reconstruction Company (ARC) will make a full exit from Kolkata-headquartered Adhunik Power & Natural Resources (APNRL), recovering about INR 1,250 crore, after the global alternative asset manager Davidson Kempner issued a INR 1,400 crore loan to the power producer and its promoter-linked entities.The funds, structured as 10-year non-convertible debentures (NCDs) with a 16.89% coupon, will be used to refinance Edelweiss's outstanding debt and to acquire its equity and optionally convertible debentures (OCDs) in Adhunik, giving the ARC a clean exit.The fresh refinancing will help Adhunik lower its restructured debt of INR 2,800 crore while also reducing the cost of borrowing.In 2017, Edelweiss ARC took on debt from State Bank of India for INR 3,200 crore under a 15:85 cash-to-security receipts structure, wherein 15% was paid in cash and 85% in security receipts (SRs). Adhunik has since improved its financial position, recently recovering INR 780 crore from discoms, improving its liability reduction and operational stability.
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