Bhushan Power and Steel Insolvency Professionals Mahender Kumar Khandelwal
I am Mahender Khandelwal is a registered insolvency and Chartered
Accountant professional. Senior management and financial professional with
wide experience spanning over 30 years in entire continuum of structuring,
financing through debt and equity instruments. Management and turnaround of
Special situations and Insolvency across wide spectrum of industries.
Led Restructuring and Resolution of a large corporates (100+) across various
sectors viz. Iron and Steel, Stainless Steel and utensils, System Packaging,
Forging Industry, Pharma, Hotels, NBFC, Rice and Food Processing, Fertilizers,
Biodiesel, Edible Oils, Biomass, Solar Panels, Power and Infrastructure,
Textile, Education, Auto Component, Polymers, Electric Appliances, Plywood,
Construction and Real Estate.
Started BRS practice in BDO & PWC as Leader & Partner successfully
resolved 20 plus cases in Insolvency under my leadership ranging fromm 200
crores to 50,000 crores.
Prior to that I was running my Boutique Consultancy firm in the name of Varrenyam Consultants Pvt Ltd.
Bhushan Power and Steel Limited.
BPSL
is the among first dirty dozen cases referred by lenders to insolvency. The
company have a borrowing of more than 47000 crores from over 35 lenders. There
has been an all-round growth and complete turnaround in the operations of the
company since the commencement of CIRP.
When RP took control over BPSL, capacity utilization was meagre 47% with
production level of 82,000 MT per month and EBITDA loss. Due to combination of
proactive CoC and decisions taken by the RP for enhancement of capacity
utilization.
During CIRP period production had increased to 200,000 MT and the company
generated EBITDA of more than 4000 crores. Moreover, the company under the
leadership of the RP/MP was able to reduce the statutory and worker liabilities
besides improving working capital levels. The RP/MP further ensured smooth
operations while managing 15,000 employees across 9 locations and provided
increments to the employees. Some of the incomplete projects were completed by
incurring additional CAPEX with COC approval. On the date of implementation
there was working capital of more than 7500 crores in cash balance of around
2500 crores.
During CIRP Period RP have handled enquiries/investigations from Regulatory
Authorities i.e. SFIO, CBI, ED and GST for pre CIRP period including closing of
draft forensic audit conducted during pre CIRP period including closing of
draft forensic audit report conducted during pre CIRP period.
Due to turnaround and enhanced operations, Resolution applicants improved their
bid amount from initial12,000 crores to 19,800 crores and JSW successfully
implemented the resolution plan and taken over control of BPSL. The Financial
creditors have recovered around 42 percent of their dues in BPSL resolution.
Corporate Insolvency Resolution Process
KSK MAHANADI POWER COMPANY LIMITED Oct 2019 – June 2020
Hyderabad Area, India, Power Plant at Bilaspur 3600MW
KSK
Mahanadi operates a coal-based power project with a nameplate capacity of 3600
MW. The company has 3 operational units and rest are under various stages of
construction. After commencement of CIRP process, we are able to operate all 3
units generating highest load with 80% capacity utilization and PLF of about
76%.
With existing operational and technical team, we have introduced various cost
cutting programs to bring in efficiency in operations. In the ongoing COVID-19
lockdown, we were running the plant at full capacity and supplying power to
distribution companies despite cash flow constraints.
CIRP of KSK is substantially delayed as rail and water infrastructure of power
plant are housed in separate subsidiary companies and lenders have filed a consolidated
application in NCLT. Getting investors interest in standalone Power plant is a
challenge due to unenviability of rail and water infrastructure.
Resolution Professional
Apr 2019 – Present
New Delhi
RP for 5 Commercial real estate companies of Ex Ranbaxy promoters namely Pawan Impex Pvt Ltd, SVIIT Software Pvt. Ltd, Payne Realtors Pvt Ltd, Prius Commercial Projects Pvt Ltd. and Sharan Hospitality Ltd.
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Financial Creditors |
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S. No. |
Entity |
Amount Admitted |
Resolution Amount |
Percentage Recovery |
Resolution Applicant
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Stage of Implementation
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1 |
Prius Commercial Projects Private Limited |
407.83 |
407.83 |
100.00% |
Consortium of Kotak Investment Advisors Limited, Minicon Insulated Wires LLP and Elita Capital Advisors LLP |
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2 |
Sharan Hospitality Private Limited |
76.75 |
76.75 |
100.00% |
Majestic Auto Limited
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Resolution Plan approved, implementation of plan is still going on
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3 |
Payne Realtors Private Limited |
27.36 |
27.36 |
100.00% |
City Gold Entertainment Ltd.
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implementation has been completed successfully |
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4 |
Pawan Impex Private Limited |
194.85 |
130.00 |
67.00% |
Consortium of DMI Alternative Investment Fund - Special Opportunities Scheme, Fact Software Private Limited and Yash Gupta
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5 |
SVIIT Software Private Limited |
59.23 |
35.15 |
60.00% |
Mr. Parmjit Gandhi
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Resolution Plan approved, implementation of plan is still going on
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Educomp Solutions Ltd.
May 2017 till date:
Till date running the company as going concern and up to date in payment to employees, Statutory dues and operational expenses in spite of adverse situation due to covid 19. Resolution Plan of EBIX Singapore Pte. Ltd. was approved by the lenders and subsequently approved by NCLT. However, due to covid resolution applicant have filed application in NCLT/NCLAT for withdrawal which NCLAT not allowed. The Resolution applicant filed in Honorable Supreme Court, appeal has been dismissed. Now order is reserved in NCLAT.
Partner and Leader Business Restructuring Services
PwC Professional Services LLP Full-time
Joined
as Partner & Leader of Business Recovery Services (BRS) practice at PwC
India. PwC is among the top consultancy firm in India and a world leader in BRS
& stressed asset resolution practices.
As a BRS Leader, I was leading a team of 70 dedicated professionals for the
overall development and growth of the vertical. I have overseen and guided
various CIRP assignments under various RP’s including Uttam Value Steels, Uttam
Galva Metallics, Era Infra & Engineering, Parabolic Drugs, Diamond Power
Infrastructure Ltd, Videocon group companies, KSK Mahanadi, Sukam Power
Systemsand PRIUS group of companies.
During this stint, I have developed strong and credible relationships with,
stressed assets funds, international fund houses, ARCs and NBFC.
Partner & Leader- Business Restructuring
BDO
India LLP is the India member firm of BDO International. BDO India offers
strategic, operational, accounting, tax & regulatory advisory and
assistance for both domestic and international organizations across a range of
industries.
As the leader and partner of BRS division, I was instrumental in establishing
insolvency practice for BDO. Through persistent market development efforts, BDO
was successfully awarded 3 out of first dirty dozen insolvency cases. These
cases were Jyoti Structures, ABG Shipyards and Bhushan Power and Steel Ltd. BDO
also won 3 cases in mid-market segment. I also developed a team of insolvency
professionals, execution team for claim verification, process advisory,
operation and maintenance, sectorial compliances, Balance sheet and cash flow
monitoring. My team was the first one to develop system, procedures and SOP’s
for insolvency practice. In the very first year of operations, we won more than
Rs. 100 crore business.
Varrenyam Consultants Private LimitedSelf-employed
13 years and From April 2021 to till date
A
boutique financial advisory services firm specializes in the field of financial
restructuring of distressed companies, settlement of debts, and resources
mobilization. During this period, I have advised more than 100 corporates on
financial restructuring and settlements ranging from 200 crores to 25000
crores.
My firm was leading advisor in the Corporate Debt Restructuring process (CDR)
and was instrumental in strategy formulation, scheme preparation, financial
modelling, valuation and techno economic studies. We were also involved in
finding strategic investor/buyers for some of the companies where post
restructuring plan required change of management.
We also organised funding for distressed assets through ARC, special situation funds, NBFC’s.
Post implementation of CIRP assignments I have restarted my above Boutique firm.
As
finance head, my job profile included Treasury Management, funds control
including collections and disbursements and supervision of banking
transactions. I was directly reporting to the President, Executive Director and
Board of Directors comprising top Professionals.
I was instrumental in implementing Financial and Operational Restructuring.
Financial restructuring involved Rephasement of repayments and lowering of
interest rates in first phase, creating vehicle for Venture fund investment and
saving the company from BIFR. As a member of Board presentation to board on
various restructuring options, Strategy formation and approvals of board on
various cost cutting and restructuring options including shutting down.
I also involved in strategy formation and approvals of board on various cost
cutting and restructuring options including shutting down of loss-making
businesses. Redesigning of MIS Systems and assisting top management on various
financial strategies. Consolidation and Centralization of Finance, Accounts and
Purchase function. Business valuation, financial modeling, Audit Finalization –
Statutory, Internal, Tax, Stock, Concurrent and due diligences.
Senior Manager-Finance &Accouts
Part
of Modicorp (ultimate holding company of B. K. Modi group companies), I was
responsible for managing funds, control, overall supervision of accounts
department of 13 companies in layers of holding and subsidiary structure.
I was also involved in Tax Planning, finalization of Accounts and interaction
with Statutory, Internal, Tax Auditors and Auditors for valuation and Due
Diligence. I also supported group financial controller for credit rating in
respect of US$ 50 Million ECB. Liaison with banks, financial institutions and
taxation authorities.
As
a part new project division, worked on project evaluation and viability study
of various projects and participated in launching of new project from grass
root level to concept paper for management, Joint Venture partners, and term
lending institutions, venture capital funds, banks and state level
institutions.
I was also responsible for arrangement of export credit limits from banks and
export documentation. Overall supervision of Accounts department, balance sheet
finalization and other related activities.
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