Acquisition of NPLs from banks & FIs:

Our Company applies a structured and systematic approach for acquisition of assets from banks and financial institutions for maximum value of all stakeholders.

Acquisitions can be structured in Cash, Security Receipts or a combination of both.

Due-diligence of assets:

Banks/FIs enable due-diligence of documents (loan/ security documents entered into by the banks/ FIs with borrower and other details pertaining to the borrower available with the bank/FIs) relating to financial assets offered for sale.

The major activities of acquisition including pre-acquisition due diligence of stressed loans and non-performing loans, are undertaken by an efficient in-house teams as well as external agencies.

Setting up Trusts:

Banks/FIs assign the stressed loans and non-performing loan along with underlying assets of the borrowers to the trusts set up by Pegasus Assets Reconstruction Private Limited (Pegasus) through an assignment agreement.

Issuance of SRs:

Security receipts will be issued to the investors, who invest money in Trust set by Pegasus for acquisition of Non-performing loan of Bank/FI.

Purchase consideration for assignment of the stressed loans and non-performing loan is paid by the trust set up by Pegasus to selling banks/FIs from the proceeds of the issue of SRs to QBs.

Management of Trust & resolution of assets therein:

Pegasus as trustee undertakes the Assets Reconstruction by implementing resolution empowerments as provided under SARFAESI Act, DRT Act, IBC code and RBI Guidelines in this regard (e.g. re-schedulement of debt, settlement, enforcement of security interest under SARFAESI Act, realisation of dues through legal means such as through DRT, maximization value of assets of person under IBC code etc.) and realizes monies from the financial assets held in trusts set up by Pegasus.

Sharing of Information:

As Trustee, Pegasus periodically shares all information with the SR holders and also declares NAV of SRs as per the RBI Guidelines.

Resolution

The Company’s resolution activities revolve around the core idea of maximization of value of all stakeholders.

Our objective is to settle the borrower account by OTS/ revive the viable accounts before enforcing mortgaged security of the borrower

We follow the combination of following resolution strategies:

• Restructuring/ rescheduling of payment of debts payable by the borrower
• Additional Finance for restructured accounts
• Settlement of dues payable by the borrower
• Enforcement of security interest
• Change in or takeover of management of the business of the borrower
• Sale or lease of part or whole of the business of the borrower

The resolution strategy depends on the operations of the borrower, quality and expertise of the borrower's top management and marketability of the borrower's assets. The resolution mechanism implemented by the Company is fair, transparent and closely monitored by Executive Committee.