Stressed Assets
Manage restructuring and resolution of distressed businesses effectively with our experts.
Enquiry Form
50
+
Completed Projects
30
%
CIRP Resolution Rate
+
Skilled Experts
K Cr+
Debt Claims Resolved
50
+
Completed Projects
50
%
CIRP Resolution Rate
+
Skilled Experts
K Cr+
Debt Claims Resolved
Our integrated ecosystem of Corporate Restructuring services serves stakeholders across the business lifecycle and pioneer in resolving complex real estate sector situations.
Our team with well-equipped skillset, experience, and infrastructure efficiently deals with the turnaround of distressed assets. We have a demonstrated history of resolving challenging situations of stressed entities via integrated services under one umbrella. Being a trusted advisor to various banks, financial institutions, homebuyers, and corporates, our experts have lead restoration of business value, improved business performance, and safeguarding of stakeholders’ interests.
Service Areas Within Stressed Assets
IBC Support Services
We offer start-to-end management of insolvency resolution or liquidation process including but not limited to claim verification, valuation, transaction audit, litigation support, process advisor, etc.
Support for Distressed Asset Sale
Our team provides buy side/sell side advisory, asset tracing, drafting of resolution plan, and marketing support for stressed assets under IBC.
Debt Restructuring and Negotiation
We conduct expert negotiation with creditors and formulation of debt restructuring plans to safeguard the client's interests.
Post-Resolution Monitoring
Our experts monitor and ensure compliance with resolution agreements, and foster long-term sustainability.
Homebuyers Advisory
Our services include responsive support offering immediate relief and bespoke solutions for homebuyers.
Asset Protection and Preservation
We design strategies that protect and preserve valuable assets during the insolvency process, and safeguard stakeholder interests.
Ascentium Insights
Frequently Asked Questions
What is Corporate Restructuring?
Corporate Restructuring is a mechanism that involves making substantial changes to a company’s capital structure or operations. This process is typically undertaken when the company faces significant challenges and/or is under financial distress.
How is Corporate Restructuring different from Turnaround?
Corporate Restructuring involves making significant changes to a company’s financial or operational structure to improve its performance and efficiency. It may include financial restructuring or operational restructuring.
Â
Whereas, Turnaround is a set of actions taken to reverse a company’s losses and restore it to profitability. This typically involves crisis management, performance improvement, strategy implementation, etc.
Why companies undergo restructuring?
The reasons that led to the perusal of restructuring by a company are as follows:
Â
1. Financial distress or insolvency
2. Preparing for a sale, merger, or acquisition
3. Adapting to market changes or digital disruption
4. Improving operational efficiency and performance
What is the purpose behind the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC)?
IBC enacted in 2016, is a comprehensive statute designed to consolidate and amend laws related to the reorganization and resolution of companies, LLPs, and individuals. Its primary objectives are:
Â
1. Efficient and effective resolution of insolvency and bankruptcy cases.
2. Promotion of entrepreneurship and availability of credit.
3. Balancing the interests of all stakeholders, including creditors and debtors.
Who can initiate insolvency proceedings against a company under IBC?
1. Financial creditor or operational creditor can initiate insolvency proceedings against a company when a dispute of an amount of atleast INR 1 crore is pre-existing between the respective creditor and the company.
2. A corporate debtor voluntarily can also initiate insolvency proceedings against itself in the event of the inability of a corporate debtor to honor its debts.
How is resolution different from recovery under the IBC?
Resolution: The goal is to rejuvenate a financially distressed company and restore its financial stability. This process involves restructuring the company’s debts and operations to ensure its viability. It is a collaborative effort among all stakeholders, including creditors and the debtor, who jointly approve a resolution plan.
Recovery: This process centers on an individual creditor’s efforts to reclaim the money owed to them. The focus is on retrieving the specific amount due, rather than reviving the company. It usually involves legal actions or the enforcement of security interests to collect the debt.
How is resolution different from liquidation under the IBC?
1. Resolution aims to revive the company and ensure its continued operation, while liquidation focuses on selling the company’s assets to repay creditors.
2. Resolution is a collective process involving all stakeholders, whereas liquidation is more about individual creditors recovering their dues.
3. Liquidation is preceded by resolution i.e when resolution fails, liquidation is pursued.
What are stressed assets?
Stressed assets are financial assets struggling to generate the expected income or repayment. They pose a potential risk of loss for creditors and serve as a crucial indicator of the banking system’s health, reflecting the quality of loans and investments made by banks.
What are the different types of stressed assets?
Stressed assets generally include the following:
Â
1. Non-Performing Assets (NPAs): Loans or advances where the borrower has failed to make interest or principal payments for a specified period, usually 90 days.
2. Restructured Loans: Loans that have been modified to provide the borrower with more favorable terms, such as extended repayment periods or reduced interest rates, due to their inability to meet the original terms.
3. Written-off Assets: Loans that the bank or lender has removed from their balance sheet because they do not expect to recover the amount owed.
What are the key factors that contribute to the successful resolution of a distressed entity?
1. Early identification of stress
2. Timely actions taken by the company management
3. Timely stakeholder involvement
4. Strategic planning
5. Choosing the right mode of restructuring
6. Working on improving operations
7. Looking for avenues for raising interim finance
8. Ensuring compliance with statutory requirements
9. Prevailing market conditions.
clientele
