INDIA Law and Practice Contributed by: Divyanshu Pandey, Utsav Johri, Sucheta Bhattacharya and Nishal Makharia, JSA Advocates & Solicitors
7.10 Expedited Restructurings Under IBC, a pre-packaged insolvency reso - lution process is currently only available for micro, small and medium enterprises (MSMEs). Insolvency proceedings can be initiated against MSMEs with a pre-agreed resolution plan. This accelerates the resolution by enabling negotia - tions with creditors before filing with the NCLT. It is anticipated that a pre-packaged insolvency resolution process for companies other than MSMEs will soon be introduced under IBC. 8. Case Studies and Practical Insights 8.1 Notable Case Studies India has seen large-ticket deals being funded by private credit providers in India. According to publicly available sources, one of the larger logistics and warehousing companies raised more than USD600 million to fund the refinancing of its debts (and debts of the group companies). In 2024, a subsidiary of one of the larger listed conglomerates raised funding of approximately USD300 million from international private credit funds. It has also been reported that GMR Airports Lim - ited (which operates multiple airports in India) has availed a funding aggregating to USD271 million, which employed a cash coupon and PIK structure. In one of the largest acquisitions under the insol - vency process in 2025, Hinduja Group is said
to have raised close to USD300 million through private credit funds. Public reports also suggest that a few major acquisitions have also been funded by private credit funders in emerging sectors, such as healthcare. 8.2 Lessons Learned With the advent of foreign private credit lenders, the diligence and market competencies have been on the rise over recent years. Origination structuring and portfolio management are more effective when funding is provided by private credit lenders. This has pushed companies to look for more comprehensive covenant monitor - ing. As a regulator, SEBI has also been monitor - ing debenture trustees to ensure that covenant testing is undertaken effectively. As some domestic private credit funders have not yet seen a full cycle, the effectiveness of the strategies of these entities is yet to be tested but it is expected that they will be on a par with their foreign counterparts operating in India. 8.3 Application of Insights While the future of private credit looks resilient, private credit providers must thoroughly evaluate risks and rewards before deploying their capital, to ensure the private credit market remains this way for a long time and sees exponential growth. In addition to commercial factors such as diver - sifying their portfolio and assessing and moni - toring the borrower’s creditworthiness and cash flows, investors need to concentrate on legal and regulatory risks, and must address any con - cerns with the help of professional advisers.
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