Introduction

Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2022, affirmed that changes have been proposed in the Insolvency and Bankruptcy Code (IBC) to enable seamless cross-border insolvency and quicker dispute resolution. She also stated that necessary amendments would be made in the IBC for more efficient dispute resolution.

In the face of mounting NPAs, the Insolvency and Bankruptcy Code 2016 helped consolidate a framework to reform laws and regulations for bankruptcy in India. A robust legal structure and level-playing field for foreign and domestic investors and defined timelines for the resolution of distressed enterprises have been inculcated in the Indian ecosystem. It's also led to India's position rising in the World Bank's Ease of Doing Business Index. It's been pivotal to build the rock on which a New India can be built. Distressed assets can provide opportunities for purchasing great assets and bring in strategic investors.

What caveats apply, amongst the hullaballoo of activity? Are the risks commensurate with the rewards? What strategies and structures need to be employed? What are the opportunities arising that need to be leveraged? What needs to be put under the spotlight in the stressed asset space? All of this and much more from bankers, investors, policymakers and other key stakeholders at India’s most compelling thought leadership forum at the VCCircle Stressed Assets Investment Summit 2022.


Agenda

9:45 AM onwards
  • 9:45 AM – 9:55 AM

    Welcome Address

  • 9:55 AM – 10:15 AM

    Keynote: The Financial Sector: Impact on Infrastructure

    The trajectory of total infrastructure credit in India slowed to 1 per cent sequential growth in H1 FY2021. While the infrastructure credit grew 7 per cent in FY2020 to Rs. 22.5 lakh crore as on March 31, 2020, it increased marginally to Rs. 22.6 lakh crore as on September 30, 2020. The goal of India is to focus on growth through infrastructure sustainably. How can the financial sector take charge to grow the country's infrastructure and play a critical role in its development? How can it assuage the distress of the infrastructure sector? How can banks make sure that capital allocation to the infrastructure sector goes to credit-worthy borrowers?

  • 10:15 AM – 10:40 AM

    Panel Discussion: Distressed Debt: Where Does It Go From Here?

    Before, India had robust growth and banks augmented their loan books rapidly. However, it was short-lived with project approval delays, decline in commodity prices and cost overruns. All of this led to the quantum of stressed loans in the banking system. We witnessed how the COVID-19 pandemic only vitiated that stress. The banking sector non-performing assets (NPAs) in India aren estimated at over 10% of assets at about $135 billion. Global distressed debt investors have made some waves in India, with dynamic insolvency laws breeding a credit-friendly environment. How can this regulatory regime bring out the best opportunities? How can these opportunities be leveraged? What does the road pave for India's distressed debt market?

  • 10:40 AM – 11:00 AM

    Special Address: Dealmaking and Stressed Assets

    There's a "buy low and sell high" strategy tied to distressed assets that creates a turnaround at reasonable valuations. As an investor, how can you navigate these turbulent waters? What kind of robust due diligence is required? What traps exist to ensnare investors and how can they be avoided? How can there be a creation of excess value?

  • 11:00 AM – 11:30 AM

    Networking Break

  • 11:30 AM – 11:55 AM

    Panel Discussion: Bad Banks: A Resolution For Stressed Assets?

    The banking system, brimming with losses, seems like it needs bad banks to handle stressed assets. Recently receiving regulatory approval, the NARCL would acquire NPA accounts from banks and the IDRCL would handle the debt resolution process. What are the issues to be ironed out in the present to prevent them from snowballing in the future? What are the resolution techniques to showcase brownfield assets and entice investors? How could there be effective value realization?

  • 11:55 AM – 12:15 PM

    Fireside Chat: M&A: IBC's New Pathways

    Distressed asset deals usually have their own risks and complexities. The COVID-19 pandemic exacerbated these risks and complexities, making it more and more cumbersome to purchase distressed assets. The IBC regime assuaged that and provided more legitimacy to M&As. How have NPAs been restructured and rehabilitated? What's the resolution plan of the CIRP for transferring assets, acquiring shares and divestment? What are the prospects for M&A deals in 2022?

  • 12:15 PM – 12:20 PM

    Closing Remarks

  • 12:20 PM – Onwards

    Lunch


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