Latest news with #DavidsonKempner
Bloomberg
05-08-2025
- Business
- Bloomberg
Saudi Steel Firm Sounds Out Advisers for Debt Restructuring
Saudi Arabia's Al Ittefaq Steel Products Co. has sought proposals from restructuring advisers, according to people familiar with the matter, ahead of expected talks with debtholders including major creditor Davidson Kempner Capital Management LP. Saudi's largest private steel manufacturer has been struggling with its debt burden for some time but has now started talking directly to potential advisers, the people said, asking not to be named because the matter is private. No mandates have yet been awarded, they added.
Time of India
15-07-2025
- Business
- Time of India
MEIL's MD taps private credit funds Elham, DK, Oaktree to raise Rs 1,500 crore
Mumbai: PV Krishna Reddy , managing director of Megha Engineering & Infrastructures (MEIL), is in talks with Elham Credit Partners, Davidson Kempner, and Oaktree Capital , among others to raise about ₹1,500 crore in debt financing as part of a broader strategy to mobilise funds to buy out his uncle and patriarch PP Reddy's shareholding in the group, said people familiar with the matter. These funds are currently engaged in due diligence and are expected to take a final decision by August, the people said. ET was the first to report on June 9 that the two principal shareholders of Hyderabad-based MEIL, the Reddy uncle-nephew duo, are finalising a family settlement which will lead to Krishna Reddy buying out uncle Pamireddy Pitchi Reddy's controlling 51% equity holding for ₹12,000-₹15,000 crore, three decades after the two began their entrepreneurial journey manufacturing and supplying small pipes to municipalities. Krishna owns the remaining 49%. MEIL has since emerged as a $5-billion, privately-held infrastructure conglomerate. Reddy has been weighing options between banks and private credit funds to raise ₹1,500 crore, eventually opting for latter as pricing is in line with expectations. The funds are likely to be raised at an internal rate of return (IRR) of 16.5-17%, a banker familiar with the matter said, adding that the funding would be required by next month. The money will be raised against Reddy's shares as collateral. However, there is still no guarantee that Reddy will agree on the final terms, despite having an imminent payment deadline, said the people mentioned above. "While discussions initiated in the beginning of the year, talks moved this month, and due diligence is still underway," one of the persons said. The settlement has to be wrapped up by March 2027. Against payment schedule for ₹15,000 crore amount, only ₹1,000 crore has been paid. Agencies Spokespeople at Oaktree and Davidson Kempner declined to comment and Elham Credit did not respond to requests for comment. Krishna Reddy could not be reached for comment. MEIL, known for its strong presence in irrigation and drinking water projects which still account for 52% of its total order book, has diversified into new sectors such as roads, power, and hydrocarbons, which contribute 18%, 13%, and 11% respectively of outstanding orders, Acuite Ratings said in a report in January. Live Events The company, which was the second highest buyer of electoral bonds in 2024 elections, had seen consolidated revenue grow 34% to ₹42,442 crore in FY24 from ₹31,766 crore in FY23. Growth was primarily led by a strong performance in its standalone EPC business, which rose to Rs 31,904 crore in FY24 from Rs 25,838 crore the previous year. Standalone order book grow to Rs 2,28,134 crore as of November 30, 2024, 7.15 times more than its FY24 standalone revenue. The company also secured fresh orders worth Rs 21,592 crore till December 2025. Other than tapping the funds, Reddy's plans to raise the requisite funds includes partial or full stake sales in a raft of businesses or assets like a power transmission project in western Uttar Pradesh, for which he has been in dialogue with Adani Group and prior to that Brookfield. Through this single sale of the interstate transmission lines and the substation network, he is aiming to raise Rs 7,000 crore, or nearly half of the total amount needed. Negotiations have also been taking place with some of the largest global funds to divest the city gas unit. Megha City Gas is operational in 62 districts across eight states including Punjab, Maharashtra, Madhya Pradesh, Andhra Pradesh and Tamil Nadu, ET had reported. The operations and maintenance wing of Olectra Greentech , the only listed entity of the group, may also be hived off to raise funds, said the people cited. Megha Engineering is the promoter of the company that makes e-buses and composite polymer insulators with a 50% stake. ETMarkets WhatsApp channel )
Mint
10-06-2025
- Business
- Mint
Andy Mukherjee: Foreign money has rushed in where local lenders fear to tread
India is a sizzling market for private credit, though some participants are wondering if in their eagerness to close deals, investors are shutting their eyes to risks, especially the legal minefields around collateral and bankruptcy. A decade ago, India's banks were struggling with the world's biggest load of soured corporate loans. At about $200 billion, the write-offs on that exposure have been large. Deposit-taking institutions that tried to recover the debt via insolvency proceedings have had to accept harsh haircuts. Traditional lenders are so scared by that experience that personal credit, which was less than half of banks' advances to industry 10 years ago, is now 1.5 times as large and growing nearly twice as fast. Credit demand and supply have changed in other ways, too. Large firms, traditionally the heaviest users of bank financing, seem the least interested in project finance. They are borrowing selectively to fund acquisitions and refinance existing debt rather than to create new capacity. Also Read: Finance in India has a new bogey called private credit Startups and their founders are far more eager to raise debt, though that's mostly because venture capital funds have become stingy. Initial public offerings are being delayed in a slowing economy, and equity valuations for many unlisted firms are cooling off. Non-bank financiers, too, are starved for funding. Banks have turned cautious about these firms' exposure to overleveraged households. This is a perfect scenario for non-traditional lenders—global insurers, asset managers and sovereign wealth funds—to fill in the void left by banks and pocket a cool 18-20% return. Värde Partners, Oaktree Capital Management and Davidson Kempner are among the most aggressive, though everyone from BlackRock to Allianz Global Investors is participating enthusiastically in the deal-making. Local players appear quite miffed. Even though they're in on many small loans, the foreign money deluge is cutting them out of marquee transactions. Domestic private-credit ventures, especially those affiliated with banks, are also keen to earn high rates of return on capital. But they're more interested in the return of capital. Some of them have struggled to raise funds because they aren't seen as bold enough. Also Read: Much more private credit will be needed to feed India's rapid economic expansion Their foreign rivals, meanwhile, lack neither capital nor courage. As a few prominent Mumbai financiers told me, overseas institutions may be mispricing the true credit risk, which won't end well. Greed may hurt foreign investors, who will then cry that it's hard to get repaid in India. Some already are. In 2021, US lenders gave $1.2 billion to Indian entrepreneur Byju Raveendran for his eponymous online education venture, then the country's most valuable startup. Now Byju's has collapsed and the money is largely gone. Creditors will be lucky to get even a few cents on the dollar from bankruptcy proceedings in India. And yet, Byju's is no longer a cautionary tale in a gung-ho market. Creditors are chasing special situations, such as a nephew who needs a hefty loan to buy out an uncle. The other opportunity is in restructuring. Last month, Shapoorji Pallonji Group, a real estate and construction conglomerate, raised $3.4 billion from Deutsche Bank and other investors to refinance previous high-cost debt. This deal, a new record for India's private-credit market, has raised eyebrows. Although repayment is due in three years, the yield on the zero-coupon bond is as high as 19.75%. The collateral is also tricky. The deal is reportedly backed by about $3.6 billion of real estate and investments in oil and gas. The crown jewel is a 9.2% stake in Tata Sons, valued at roughly $18.6 billion. Also Read: Shapoorji Pallonji Real Estate rejigs top deck, appoints dual CEOs But how will value from the holding company of Tata Group, whose listed units are worth $325 billion, ever be realized? Shares in privately held Tata Sons aren't freely transferable. That's the official position of the charitable trusts that are its majority shareholders. Maybe investors are betting that the trusts will eventually relent or that they will buy out Shapoorji, the largest minority shareholder. Neither outcome can be predicted with any degree of bold bet shines a light on the buccaneering spirit that has taken over India's nascent private-credit industry. Policymakers would want to see more risk-taking in creation of new assets. India's new central bank chief has slashed interest rates, reducing the repo rate by a more-than-expected half percentage point on Friday. He has also flooded the financial system with liquidity. But given the cloudy outlook for global trade and local consumption, corporate investment isn't India Inc's priority. Swapping assets among one another is. As for the money, there are enough private lenders willing to write checks of $100 million or more. And if they don't, someone else will. ©Bloomberg The author is a Bloomberg Opinion columnist covering industrial companies and financial services in Asia.
Hospitality Net
14-05-2025
- Business
- Hospitality Net
Portugal Hotels & Chains Report 2025
Welcome to the 2025 Portugal Hotels and Chains Report, a comprehensive exploration of the dynamic hospitality industry in Portugal. This report delves into the unique opportunities and challenges facing this flourishing market, offering valuable insights. Portugal's hospitality industry continues to stand out as one of Europe's most dynamic and resilient markets. In 2024, the country reinforced its position as a top-tier global tourism destination, buoyed by sustained demand, growing international interest, and a robust investment environment. While traditional destinations like Lisbon, Porto, and the Algarve remained strongholds of growth, there was a notable surge in visitor numbers to lesser-known regions, signalling a broader diversification of tourism flows. The sector's evolution has been marked by a shift toward more sustainable, experiential, and culturally immersive travel. This has driven both strategic investments and operational innovation, particularly in the midscale segment, which is experiencing a rapid rise in popularity among younger, budget-conscious travellers. Meanwhile, institutional investors continue to demonstrate high confidence in the Portuguese market, despite macroeconomic challenges, with new developments and brand entries expanding across the country. This report provides a detailed snapshot of current performance, development pipelines, and market trends shaping Portugal's hotel landscape. From the increasing dominance of international hotel chains to the strong RevPAR growth across emerging destinations, the 2025 edition offers a timely, data-driven perspective on the forces driving this high-performing European hospitality market. Market Dynamics Strong Growth : In 2024, Portugal reinforced its position as a leading global tourism destination, with a 5% rise in guests and a 4% increase in overnight stays, mostly driven by international travellers (over 70%). : In 2024, Portugal reinforced its position as a leading global tourism destination, with a 5% rise in guests and a 4% increase in overnight stays, mostly driven by international travellers (over 70%). Revenue Performance : Hotel revenues rose by 12%, with RevPAR up 8% to €65.4 and occupancy at 62.3%. : Hotel revenues rose by 12%, with RevPAR up 8% to €65.4 and occupancy at 62.3%. Urban Focus with Rural Expansion: While Lisbon and Porto remain dominant (Lisbon RevPAR at €112.6; Porto overnight stays up 9%), lesser-known areas like Oeste, Vale do Tejo, and the Azores also saw 8–10% growth in overnight stays. Key Highlights Shift Toward International Brands International brands are growing as domestic brands shrink. Davidson Kempner acquired 21 distressed hotels and handed operations to Highgate. Rebranding of NAU Hotels & Resorts properties under Marriott (e.g., Marriott Residences Salgados Resort). Hilton plans to add 2,000+ rooms; Marriott is developing a €52.5M luxury resort at Verdelago. Development Pipeline Led by Lisbon Lisbon City has the most projects: 34 hotels / 5,167 rooms in the pipeline. Opening Targets for 2025: 24 new hotels across Lisbon, North, Algarve, and Alentejo. Challenges: Licensing delays, financing, and technical issues are affecting delivery timelines. Midscale Segment Booming 16 new chain midscale hotelsadded in 2024, surpassing other segments in growth. Trend driven by younger, budget-conscious travelers seeking experiential stays. Institutional Investment Remains Strong Davidson Kempner: Largest institutional owner with 21 hotels, €773M investment. Other major investors: Arrow Global (8 hotels), Azora, Square Asset, and Extendam. Download the full report About Horwath HTL Horwath HTL is focused one hundred percent on hospitality, tourism, and leisure consulting. Our services cover every aspect of hotel real estate investment, tourism, and leisure development. Our clients choose Horwath HTL because we have earned a reputation for impartial advice that will often mean the difference between failure and success. Each client project is unique, and they rely on us to utilize the experience we have gained throughout our 100-year history to assist them in achieving their goals. Being a global firm with 52 offices in 40 countries, we have successfully carried out over 40,000 assignments for both public and private clients. As part of the Crowe Global network, a top-ten accounting, and financial services network, Horwath HTL is the number one choice for companies and financial institutions looking to invest and develop in the industry. For more information, please visit View source
Time of India
22-04-2025
- Business
- Time of India
Edelweiss ARC exits Adhunik as Davidson Kempner takes control
Mumbai: Edelweiss Asset Reconstruction Company will make a full exit from Adhunik Power & Natural Resources (APNRL), recovering about ₹1,250 crore, after global alternative asset manager Davidson Kempner issued a ₹1,400 crore loan to the power producer and its promoter-linked entities. The funds, structured as 10-year non-convertible debentures (NCDs) with a 16.89% coupon, will be used to refinance Edelweiss's outstanding debt and to acquire its equity and optionally convertible debentures (OCDs) in Adhunik, giving the ARC a clean exit. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Do You Speak English? Work for a USA Company, Live in Khula Sadar US Jobs Online | Search Ads Undo Of the total, ₹1,250 crore was lent directly to Adhunik Power, with the remaining routed through group companies. The fresh refinancing will help Adhunik lower its restructured debt of ₹2,800 crore while also reducing the cost of borrowing. A spokesperson for Davidson Kempner declined to comment while Edelweiss did not comment. Live Events Edelweiss, which had acquired Adhunik via the insolvency resolution route, had been gradually monetising its exposure through asset sales and repayments. The latest deal marks the end of Edelweiss's involvement, transferring control to Davidson Kempner-backed entities. In 2017, Edelweiss ARC took on debt from State Bank of India for ₹3,200 crore under a 15:85 cash-to-security receipts structure, wherein 15% was paid in cash and 85% in security receipts (SRs). Adhunik has since improved its financial position, recently recovering ₹780 crore from discoms, improving its liability reduction and operational stability. Davidson Kempner's fund helped Adhunik cut borrowing costs by 4-5% compared to prior obligations. The refinancing deal also tracks a recovery in valuations of Adhunik's 540 MW coal-based thermal plant in Jharkhand from ₹2 crore/MW to ₹3-3.5 crore/MW, supporting a viable debt load of around ₹1,600 crore. Adhunik Power has also boosted its liquidity after recovering ₹780 crore from discoms.
