Chennai based logistic company with a large fleet of transport vehicles engaged in the transportation of various goods including ODCs. 60% of their revenue was coming from ODCs goods transportation mainly wind mills. Company was capex heavy in first quarter because of equipment finance from various NBFCs & Banks. Addition to that energy industry wasn’t doing well and there were huge debtors from this segment. Company was facing difficulties to repay their existing loans due to the non realization of debtors on time leading to a severe cash crunch.
Company started to defaulting their interest & principal payments in few instances. Company needed additional fund/ working capital to take care of their payments. We structured their facilities in a way that it mitigated all the issues to the satisfaction of lender. Furthermore, we raised Rs. 100 Crs for the company with longer repayment tenure and moratorium of principal for six months. This structure addressed cash crunch situation and allowed company to have additional liquidity in their cash flow.