Situation at the time R3 stepped in

• Company was stress for a long time and operations were shut
• Due to power supply issues and working capital erosion, debt had reached unsustainable level, account turned NPA and bank was not in favour of restructuring
• Promoter was not able to bring in any funds and hence resolution depended upon investor funding only

R3 Value Addition

• R3 was aware of the asset and bank also had asked R3 to look for potential buyers
• R3 identified potential buyers and discussed with the bank
• As a strategy, investor wanted acquisition to be done under ARC route
• Based on the same, bank agreed to put the asset for ARC acquisition

End Result

• ARC acquired the asset from the Bank
• Buyer/ Investor subsequently acquired the asset from ARC under SARFEASI route
• Company is on the turnaround path and in the process of restart of operations