Overview

• Haldia Petrochemicals Limited (HPL) -Flagship company of The Chatterjee Group promoted by Dr. Purnendu Chatterjee. 
• Consortium of HPL (57%) and its Joint Venture Partner Rhone Capital (43%) acquired 100% equity stake Lummus Technology in all cash deal from Houston based McDermott International Inc in June 2020
• SBICAPS acted as the Buy-side M&A advisor to Haldia Petrochemicals Limited in structuring the deal and also in facilitating closure of the deal.
• Lummus has the industry’s most robust technology portfolios for the hydrocarbon processing sector. 
• Leading licensor of proprietary petrochemicals, refining, gasification and gas processing technologies, and a supplier of proprietary catalysts and related engineering.
• 130+ Licensed Technologies, 3,400+ Patents, Patent Applications and Trademarks and more than 850 Global Technology Staff. 

Deal Highlights

• Strict Timelines under court driven Chapter 11 Bankruptcy filing. 

• Approvals from various jurisdictions – Given that entities of the Lummus Group were spread throughout the globe.

• Underlying asset was intangibles in the nature of patents and licenses against tangible assets in a usual M&A transaction.

• SBLC based funding – SBLC sanctioned by SBI CCG Kolkata; FCTL by SBI IBG; disbursement and documentation done with SBI London.

• Security for SBLC Not on target assets but on HPL; target assets were used for raising LBO at target level of USD 1459 Mn and hence not available for charge creation.
• RBI Approval – Obtaining RBI approval challenging because no direct cash flows flowing back from target and  large amount of fund was being sent out as ODI with no direct returns.