The proposed partnership will consider buying assets or companies that have access to credit or are struggling to access alternative resources as bankruptcy proceedings become normal after a twelve-month moratorium. Vishal Prakash, Partner and Head of Structured Credit, Brescon Advisors, said, “India offers a huge opportunity for business with special status, especially after the pandemic, due to which many sectors are facing temporary headwinds and So there is liquidity stress.”
Through the collaboration with Brescon, Broad Peak aims to invest in India in a range of special situations ranging from turnaround, debt resolution to litigation financing. Broad Peak Managing Director Sandeep Gupta said, “Brescon has a strong reputation in the stressed/distressed debt space in India and we look forward to working with them and other stakeholders.”
The company expects banks to come forward to lend more and the lenders are planning to sell up to Rs. 2 lakh crore assets to National Asset Reconstruction Company Limited. “The arrangement is a perfect combination of global capital backed by local knowledge,” said Nirmal Gangwal, Managing Partner, Brescon & Allied Partners LLP. Broad Peak, A pan asia The focused multi-strategy investment management firm, combines a bottom-up research-based approach with detailed fundamental analysis and understanding of value-creating catalysts to generate superior risk-adjusted returns for the funds under its management.
Mumbai-based Brescon is an independent financial advisory firm focused on special situations and stressed assets. Brescon provides services related to financial and corporate restructuring, recapitalization and debt refinancing. It is also actively engaged in disinvestment advisory, merger and acquisition advisory, structured financing resolution and insolvency services within the ambit of the Indian Bankruptcy Code (IBC).
The strategic partnership comes at a time when experts believe the stressed asset situation in India will further complicate. Indian banks are likely to see an increase in gross non-performing assets (GNPs)NPA) 8-9% of total borrowings at the end of this financial year from 7.5% last year, rating agency
Said in October.
Crisil’s senior director and deputy chief rating officer Krishnan Sitaraman said retail customers and the micro, small and medium (MSME) segments will lead the way.