Dhir & Dhir Associates have advised the Lenders, REC Limited and IREDA, on the sanction and disbursement of term loan of approx. Rs. 4,053 Crore to Suzlon Energy Limited and its subsidiaries. With the disbursement of the said facility, REC Limited and IREDA Limited have substituted a consortium of sixteen lenders (led by State Bank of India).
In its role as the Lenders’ Legal Counsel, the firm carried out legal due diligence of the Borrower Group, drafted and negotiated the financing and security documents, and provided legal advice on crucial matters pertaining to the transaction.
“Our practice over the years gives us an edge since we acknowledge the fact that an equilibrium needs to be maintained vis a vis the requirements of lenders and the commercial flexibility sought by the borrowers. Closing complicated transactions becomes easy when this understanding is achieved without compromising the sanctity of the transaction.”, said Alok Dhir, Founder & Managing Partner, Dhir & Dhir Associates.
Given the sensitive and critical nature of the transaction, numerous complex issues came up, which, after much deliberation, were resolved to the satisfaction of all, in a manner that is not only fair to the parties, but also to spirit of financing.
“Such transactions come laden with legal and commercial challenges. We are equipped to tactfully deal with the intricacies involved since we have a deep appreciation for the far-reaching implications which such high-stake transactions, involving public money, can have on all stakeholders, especially institutions like REC and IREDA.” remarked Purusharth Singh, Partner at Dhir & Dhir who led the transaction as Lenders’ Counsel.
The core team at Dhir & Dhir Associates, representing the New Lenders, comprised Purusharth Singh (Partner), Humera Niyazi (Senior Associate), Nikhil Gupta (Associate), Anurag Mawai (Associate), and Raman Choudhry (Associate). The Borrower Group was led by their General Counsel Anoop Khatry, who negotiated the transaction documents for closure.
