Dhir & Dhir Associates Advises IIFCL On Its Takeout Finance Scheme

Dhir & Dhir Associates advised India Infrastructure Finance Company Limited (IIFCL), on the sanction and disbursement of a takeout facility aggregating to INR 1000 Crores under its Takeout Finance Scheme to MB Power (Madhya Pradesh) Limited, a group company of Hindustan Power. With the disbursement of the said facility, the State Bank of India and Axis Bank were substituted by the IIFCL facility.

Dhir & Dhir Associates acted as Lender's Legal counsel to IIFCL, wherein some existing lenders were taken out by the takeout facility of IIFCL, and other existing lenders continue to participate in the documentation, which made the transaction unique and distinct from other takeout or refinancing transactions.

In its role as IIFCL’s legal counsel, the scope of work was not limited to drafting financing and security documents for securing the takeout facility. It was also involved in discussions and negotiations with the existing consortium lenders and their counsel. During the exercise, all previous facilities the Company availed before the takeout facility were also a part of the IIFCL transaction documents for the Takeout Facility being provided by them.

The firm provided its legal opinion on more than 400 litigations pending against or by the company, conducted title search over the project land admeasuring 2034.13 Acres (including leased and private land) and provided its opinion on the title of the Company.

Mr. Alok Dhir, Managing Partner said that, “Given the sensitive and critical nature of the transaction, numerous complex issues came up with respect to the structure, security and concerns of the existing consortium lenders, which, after much deliberation, were resolved well within the timeline to the satisfaction of all Parties. Our firm’s experience, expertise, knowledge and strategic advice played a significant role in navigating the intricacies involved, ultimately leading to the transaction's successful completion.”

“We always address challenging transactions with expertise and put our best efforts into successfully closing matters with a solution-oriented approach. Our role was not only limited to documentation but also extended to conducting due diligence, deal structuring and negotiation, and advising IIFCL and providing support to other existing lenders as well, to protect the interest of each party involved” said Guranpreet Singh Sarna, Partner, Dhir & Dhir Associates.

The core team at Dhir & Dhir Associates, comprised Alok Dhir (Managing Partner), Sachin Gupta (Senior Partner), Guranpreet Singh Sarna (Partner) and team.