Mega Company Turnaround



Mega Company Turnaround - Essar Steel India
Vivek Kamra, Alvarez and Marsal India Private Ltd
Dilip Oommen, ArcelorMittal Nippon Steel India Ltd (Erstwhile Essar Steel India Ltd)
Kshitij Mohan, State Bank of India
Srinath Narasimhan, Edelweiss Asset Reconstruction Company Limited
Dhananjay Kumar, Cyril Amarchand Mangaldas
Sapan Gupta, Shardul Amarchand Mangaldas & Co.
Soummo Biswas, Shardul Amarchand Mangaldas & Co.
Satish Kumar Gupta
Nikhil Shah, Alvarez and Marsal India Private Ltd

About the Turnaround:
Manufacturing giant Essar Steel India, Ltd., India’s fourth-largest steelmaker, has produced steel used in some of India’s most iconic public works projects, such as the Bogibeel Bridge, India’s longest railway bridge; bulletproof steel used in armored vehicles; and many of India’s most recognizable consumer and industrial products. So, when ESIL was pushed into insolvency in August 2017—at the time, India’s largest insolvency—the entire country took notice. Not only were the futures of ESIL and its approximately 12,000 employees at stake, but so was the viability of the country’s new, yet untested, Insolvency and Bankruptcy Code (IBC), adopted only a year before. 

With outstanding debt of approximately $7 billion (assumed $1 = INR 70) owed to a plethora of India’s top financial institutions, private lenders, foreign investors, and approximately 1,900 operational creditors, “Nobody could brush this case aside,” one creditor committee member told Mint (12/23/19). “It was a lot of money coming back into the banking system and the government was forced to sit up and take notice.”

International turnaround firm Alvarez & Marsal (A&M) was selected as advisor to the court-appointed resolution professional, Satish Kumar Gupta. A&M restructuring lead Nikhil Shah, along with steel industry expert Vivek Kamra, assembled a team of 25 operators, consultants, and accountants to manage the insolvency process. Working with ESIL management, led by Managing Director Dilip Oommen and the committee of creditors, they preserved and enhanced the value of the company while maximizing recoveries through an efficient insolvency process.

Addressing ESIL’s myriad structural and operating challenges, which included unpaid creditors and vendors, acute liquidity shortages, deteriorating physical assets, and plummeting employee morale, the turnaround team conceived a three-phase transformation and solvency plan. First, the company was stabilized through the implementation of creditor interest moratoriums while negotiating with vendors to ensure ongoing production. The company then eventually shifted to a growth strategy that improved profitability through increased throughput and cost restructuring. Eyeing an eventual sale, the turnaround team finally focused on cost optimization, overhauling ESIL’s supply and distribution chains. All of this was accomplished while placing a premium on communications with employees, creditors, and vendors.

After 865 days in insolvency, ESIL emerged on December 16, 2019, with a 25% production volume increase. The company’s ultimate acquisition by ArcelorMittal and Nippon Steel (AM/NS) resulted in more than 85% recoveries by financial creditors and 20% recoveries for operational creditors. Perhaps more importantly, the successful restructuring and sale provided a strong validation of India’s nascent insolvency laws, reassuring creditors, investors, financial markets, and governments worldwide that the new system worked. 

ConferenceAgenda

Agenda subject to change - all times in CDT
 

Tuesday, September 29, 2020  
8:00 a.m. - 11:30 a.m. 

Morning Coffee Shop Chat Rooms

Sponsored by MACCO Restructuring Group, LLC

8:45 a.m. - 9:00 a.m. Daily Announcements 
9:00 a.m. - 9:30 a.m.

Guided Meditation Class

Sponsored by Ritchie Bros

9:00 a.m. - 10:00 a.m.

Opening Session: Mega Trends 3.0               

Sponsored by Saul Ewing Arnstein & Lehr LLP

10:00 a.m. - 10:20 a.m.  VIP Access with Mega Trends 3.0 Panelists
10:30 a.m. - 11:30 a.m. 

TMA NOW Event 

Sponsored by AlixPartners, LLP

12:30 p.m. - 1:30 p.m.

General Session: Options! Options! Options! Alternatives to Bankruptcy       

Sponsored by Sherwood Partners, Inc.

12:30 p.m. - 3:30 p.m. 

Re-Energized Afternoon Coffee Shop Chat Rooms

Sponsored by MACCO Restructuring Group, LLC

1:30 p.m. - 1:50 p.m.  VIP Access with Options! Options! Options! Alternatives to Bankruptcy panelists 
2:00 p.m. - 3:00 p.m.

Education Session: Contested Issues in DIP Financing in the Uncertain World of Our New Normal

Sponsored by Riemer & Braunstein LLP

2:00 p.m. - 3:00 p.m.

Education Session: Managing Chaos in the Era of Loan Defaults: What Lenders and Borrowers Need to Know

Sponsored by McCarter & English, LLP

4:00 p.m. - 7:00 p.m. 

Spiked Coffee Shop Chat Rooms

Sponsored by MACCO Restructuring Group, LLC

4:00 p.m. - 5:00 p.m.  TMA 101: First-Timers and New Members Event 
5:00 p.m. - 6:00 p.m. 

Education Session: The Dark Days and Nights for the Sports Industry

Sponsored by FTI Consulting, Inc.

5:00 p.m. - 6:00 p.m.

Education Session: Beyond the Transaction: Stories of Post-Merger Integrations

Sponsored by CohnReznick LLP

6:00 p.m. - 7:00 p.m. 

TMA Variety Show 

Sponsored by Ritchie Bros

Wednesday, September 30, 2020  
8:00 a.m. - 8:30 a.m. 

Turnaround Yoga Class 

Sponsored by Ritchie Bros

8:00 a.m. - 11:30 a.m. 

Morning Coffee Shop Chat Rooms 

Sponsored by Newpoint Advisors Corporation

8:45 a.m. - 9:00 a.m. Daily Announcements 
9:00 a.m. - 10:00 a.m.

General Session: They Might Be Giants: The Titans of Today and Their Lessons from Along the Way

Sponsored by Hilco Global

10:00 a.m. - 10:20 a.m.  VIP Access with They Might Be Giants: The Titans of Today and Their Lessons from Along the Way panelists 
10:30 a.m. - 11:30 a.m. 

TMA NextGen Event 

Sponsored by Arch + Beam

12:30 p.m. - 1:10 p.m.

Keynote: Mariana Mazzucato: Never Waste a Crisis: Rethinking Capitalism During COVID-19

Sponsored by Gordon Brothers

12:30 p.m. - 3:00 p.m.

Re-Energized Afternoon Coffee Shop Chat Rooms

Sponsored by Newpoint Advisors Corporation

1:10 p.m. - 1:30 p.m.  VIP Access with Keynote Speaker 
2:00 p.m. - 3:00 p.m.

Education Session: Figuring Out Retail: What Was Already Bad Just Got a Lot Worse

Sponsored by Hilco Global

2:00 p.m. - 3:00 p.m.

Education Session: The Impact of COVID-19 on Higher Education: A Schism of Debt, Endowments, and Educational Challenges, Too

Sponsored by Alvarez & Marsal

4:00 p.m. - 5:00 p.m. 

TMA Awards Celebration: "Better Together Roundtable"

Sponsored by Ritchie Bros

4:00 p.m. - 7:00 p.m. 

Spiked Coffee Shop Chat Rooms

Sponsored by Newpoint Advisors Corporation

5:00 p.m. - 6:00 p.m. 

The Business IMPACT of Diversity and Inclusion: Strategic Conversation Workshop

Sponsored by Burford Capital

6:00 p.m. - 6:20 p.m. VIP Access with Diversity and Inclusion Workshop panelists 
6:00 p.m. - 7:00 p.m.  TMA Family Feud
Thursday, October 1, 2020  
8:00 a.m. - 11:30 a.m. 

Morning Coffee Shop Chat Rooms 

Sponsored by Gulf Coast Business Credit

8:45 a.m. - 9:00 a.m. Daily Announcements 
9:00 a.m. - 9:30 a.m. 

Impact Fitness Class 

Sponsored by Ritchie Bros

9:00 a.m. - 10:00 a.m.

Keynote: Duncan Wardle, Innovation & Creativity in a Virtual World

Sponsored by Burr & Forman, LLP

10:00 a.m. - 10:20 a.m.  VIP Access with Keynote Speaker Duncan Wardle 
10:30 a.m. - 11:30 a.m. 

TMA Talks: International 

Sponsored by Deloitte

12:30 p.m. - 1:30 p.m.

General Session: Will the Patient Survive? The Healthcare Industry in a COVID-19 World

Sponsored by Carl Marks Advisors

12:30 p.m. - 3:00 p.m. 

Re-Energized Afternoon Coffee Shop Chat Rooms

Sponsored by Gulf Coast Business Credit

1:30 p.m. - 1:50 p.m. VIP Access with Will the Patient Survive? The Healthcare Industry in a COVID-19 World panelists 
2:00 p.m. - 3:00 p.m.

Education Session: Intentions in Retention: Ethical Considerations When Being Retained in Bankruptcy Cases     

Sponsored by SM Financial Services Corporation

2:00 p.m. - 3:00 p.m. 

Education Session: Market Liquidity and Impact

Sponsored by Deloitte

3:30 p.m. - 4:00 p.m.  VIP Access 
4:00 p.m. - 7:00 p.m. 

Spiked Coffee Shop Chat Rooms

Sponsored by Gulf Coast Business Credit

4:00 p.m. - 5:30 p.m. 

Virtual Capital Connection + Networking Event

Sponsored by Duff & Phelps, LLC and Getzler Henrich & Associates LLC

5:30 p.m. - 6:30 p.m. 

TMA 'Big Tent' Celebration

Sponsored by Ritchie Bros