Firm Matters

Khaitan & Co advised financial institutions led by Kotak Mahindra Investments Ltd and Kotak Mahindra Bank Ltd on providing term loan and working capital facilities amounting to up to INR 327 crores to Deepak Fasteners Ltd, for, inter alia, refinancing existing debt availed by Deepak Fasteners Ltd from multiple AIFs, including those managed by EAAA. The engagement included advising and execution of cross-collateralised unified security structure and inter-creditor arrangement for the benefit of all lenders who have extended individual facilities.

This is one of the rare transactions where bank financing was availed to give exit to AIFs. The transaction also involved advising on the interplay between the lenders' security interests and pre-existing rights of certain financial investors for safeguarding the lenders' position.