Banks Resolve Karanja Logistics Debt Via Prudent ARC Deal; SAM Advises

BANKINGFINANCE

Overview

A consortium of lenders, led by Canara Bank, successfully resolved the debt of Karanja Terminal & Logistics Private Limited by transferring its loan exposure to Prudent ARC Limited. Shardul Amarchand Mangaldas & Co advised the lenders through a complex, RBI-compliant debt resolution process, including successfully defending against legal challenges at the Delhi High Court.

Consortium of lenders led by Canara Bank, along with Punjab & Sind Bank and Bank of Baroda, has successfully resolved the debt of Karanja Terminal & Logistics Private Limited. The resolution involved transferring the company's entire loan exposure to Prudent ARC Limited, adhering strictly to the Reserve Bank of India's (RBI) Transfer of Loan Exposures Directions, 2021. The transaction was finalized on January 13, 2026.

Legal Advisory Crucial

Shardul Amarchand Mangaldas & Co (SAM) provided critical legal counsel to the consortium of lenders throughout this complex transaction. Their mandate extended beyond just advising on the debt transfer structure.

Navigating Complex Structures and Litigation

The deal was particularly notable for its successful structuring and execution of a multi-layered swiss challenge process, designed for an infrastructure-backed debt portfolio. SAM ensured strict compliance with RBI guidelines. The firm also successfully defended the lenders against intensive litigation before the Delhi High Court, thwarting challenges to the bid process and enabling the timely closure of the transaction without any stay or disruption. The SAM team involved in this success included Anoop Rawat (National Practice Head – Restructuring and Insolvency, Partner), Arushi Chandra (Principal Associate), Snigdha Saraff (Associate), Diksha Sharma (Associate), and Charu Bansal (Principal Associate) for the court proceedings.

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