Asset Acquisition and Redevelopment.

Primestone Project Holdings Private Limited, we follow a robust strategy for acquisition of NPLs and purchase NPLs at a realistic acquisition price from the lenders. We have an extensive network of consultants and advisors pan India with extensive experience in banking and various industries, who identify NPL cases with a potential to be revived and restructured. Our team then follows a rigorous due diligence process to assess the legal and operational status of the account. A comprehensive acquisition note is prepared which is put forth to the CARFA comprising of senior bankers with rich experience in stressed asset resolution who approve each proposal before acquisition. Some of the factors considered during due diligence and by the committee before acquisition are as follows –

High potential of recovery/resolution in the NPA account in sight before acquisition – NPAs where turnaround and business viability is possible
Adequate underlying tangible security should be available in the form of primary or collateral security. In case of exceptions, assets should be adequately guaranteed by persons having significant net worth.
Average resolution period of three to five years
Preference to MSME and mid-corporate borrowers with debt in the range of INR 1 cr – INR 1000 cr
Preference to sole banking NPAs
NPAs whereby last mile funding can revive the unit to generate adequate cash flows, thereby making the business viable and ensuring growth.

RESOLUTION

Primestone Project Holdings Private Limited resolution activities revolve around the core idea of maximization of realization from each distressed account it acquires. The main aim of our ARC is to revive and turnaround the distressed company where ever possible, by providing a new lease of life to the borrower/promoter and supporting the livelihood of hundreds and thousands of workers and employees working in these companies.

Under the extant Reserve Bank of India (RBI) guidelines, ARCs are empowered to adopt one of the following resolution strategies or a combination thereof, for reconstruction of the acquired assets:

Change in or takeover of management of the business of the borrower
Rescheduling of payment of debts payable by the borrower
Settlement of dues payable by the borrower
Enforcement of security interest
Sale or lease of part or whole of the business of the borrower
Convert any portion of debt into shares of a borrower company

DILIGENCE & EVALUATION

Due Diligence of the FA proposed to be acquired includes financial and legal diligence as also any other diligences, on a case-to-case basis. As per RBI regulations, the ARC gets at least two weeks to carry out due diligence before bidding for the stressed asset.

1 Legal Due Diligence (LDD)
Review of loan documents for creation of security and collateral cover, including enforcement pertaining to primary and collateral securities, enforceability of documents pertaining to guarantors in respect of their liabilities, clarity of title, attachment orders, if any in force. The scrutiny also covers details of actions pending/ contemplated, if any by tax authority.

2 Borrower Diligence
Collection of market information about the borrowers/guarantors and the financial asset proposed to be acquired.
Site visits and inspection of borrower’s premises/place of business are carried out either internally or by appointing an external agency.

3. Financial Diligence
The ARC undertakes valuation of proposed acquisition based on size of the asset, acquisition category and proposed resolution mechanism.
Valuation of the FA is carried out internally or through appointment of external agencies. In case of real estate, the applicable rates as per ready reckoner are used as an alternative.

4 Collateral Diligence
When the resolution is expected to be based on sale of underlying securities, site visits are conducted to understand the value, marketability and any other relevant issues regarding the property.
Fresh valuation report of the underlying secured assets is obtained if the valuation carried out by the seller bank / FIs is more than 1 year old.

Contact Us

Feel Free to Contact us

Headquarters
Primestone Premier, No 69, 7th Main, BTM Layout 2nd Stage,
Bangalore - 560076

Branch Address
No 16/1, 1st Floor, Srivastam Complex, Behind SBI Bank, JC Road Cross, Bangalore - 56002

+91 7676149282

info@primestoneholdings.com

Primestone Project Holdings Private Limited

Asset Acquisition and Redevelopment.