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Master Restructuring Agreement Template for India

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Key Requirements PROMPT example:

Master Restructuring Agreement

"I need a Master Restructuring Agreement under Indian law for a manufacturing company with existing debt of INR 500 crore across a consortium of 5 banks, including provisions for asset sale and debt-to-equity conversion options to be implemented by March 2025."

Document background
The Master Restructuring Agreement (MRA) is a crucial document in Indian corporate debt restructuring, typically employed when a company faces financial stress and needs to reorganize its debt obligations with multiple lenders. It becomes necessary when standard loan repayment terms need modification due to business challenges, market conditions, or other factors affecting the borrower's ability to service debt. The MRA consolidates all restructuring terms, including revised repayment schedules, interest rates, additional security creation, and monitoring mechanisms, while ensuring compliance with Reserve Bank of India guidelines and relevant banking regulations. This document is particularly important in the Indian context where consortium lending is common and regulatory oversight of debt restructuring is significant. It serves as the primary reference document for all stakeholders throughout the restructuring period.
Suggested Sections

1. Parties: Identification of the borrower, all lenders, security trustees, and other relevant parties

2. Background: Context of the existing facilities, reason for restructuring, and overview of the restructuring arrangement

3. Definitions and Interpretation: Comprehensive definitions of terms used in the agreement and rules of interpretation

4. Restructuring Terms: Core terms of the restructuring including revised payment schedules, interest rates, and other financial terms

5. Conditions Precedent: Conditions that must be satisfied before the restructuring becomes effective

6. Implementation: Process and mechanics of implementing the restructuring arrangement

7. Representations and Warranties: Standard and specific representations and warranties from the borrower

8. Covenants: Positive and negative covenants applicable during the restructured facility period

9. Security Structure: Details of security arrangements, including existing and additional security

10. Events of Default: Circumstances constituting default and consequences thereof

11. Rights and Obligations of Parties: Specific rights and obligations of each party under the restructuring

12. Payments and Calculations: Payment mechanics, calculation methods, and payment priorities

13. Changes to Parties: Provisions regarding transfers, assignments, and changes in lenders or borrower structure

14. Administration and Monitoring: Procedures for monitoring compliance and administration of the restructured facilities

15. Governing Law and Jurisdiction: Choice of law and jurisdiction for dispute resolution

16. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability

Optional Sections

1. Inter-Creditor Arrangements: Required when multiple lenders are involved, detailing the relationship and priority between different classes of lenders

2. Currency Provisions: Needed when the restructuring involves foreign currency denominated debt

3. Special Purpose Vehicle: Required when restructuring involves creation of an SPV for asset management

4. Asset Sale Provisions: Include when restructuring involves planned sale of specific assets

5. Conversion Rights: Required when restructuring includes option to convert debt to equity

6. Step-In Rights: Include when lenders require right to take control in specific circumstances

7. Refinancing Provisions: Include when there's a contemplated refinancing as part of restructuring

Suggested Schedules

1. Schedule 1 - Existing Facilities: Details of all existing facilities being restructured

2. Schedule 2 - Lender Commitments: List of lenders and their respective commitments

3. Schedule 3 - Security Details: Comprehensive list and details of all security arrangements

4. Schedule 4 - Repayment Schedule: Detailed schedule of restructured repayment terms

5. Schedule 5 - Forms of Notices: Standard forms for various notices under the agreement

6. Schedule 6 - Conditions Precedent Documents: List of all required conditions precedent documents

7. Schedule 7 - Financial Covenants: Detailed financial covenants and calculation methods

8. Schedule 8 - Security Release Mechanics: Procedures for release of security upon satisfaction of conditions

9. Appendix A - Implementation Steps: Detailed steps and timeline for implementing the restructuring

10. Appendix B - Corporate Structure: Chart showing corporate structure of borrower group

11. Appendix C - Asset Details: Details of key assets involved in restructuring

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






















































































Clauses

















































Relevant Industries

Manufacturing

Infrastructure

Real Estate

Power Generation

Steel

Textiles

Telecommunications

Aviation

Shipping

Construction

Healthcare

Hospitality

Mining

Automotive

Relevant Teams

Legal

Finance

Treasury

Corporate Finance

Risk Management

Compliance

Credit

Senior Management

Corporate Secretarial

Restructuring

Strategy

Operations

Relevant Roles

Chief Financial Officer

Finance Director

Legal Counsel

Company Secretary

Treasury Manager

Risk Manager

Chief Executive Officer

Chief Restructuring Officer

Debt Restructuring Advisor

Corporate Finance Manager

Compliance Officer

Credit Manager

Financial Controller

Managing Director

Recovery Officer

Relationship Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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