Case Study 4: Company Informal Debt Arrangement (CIDA)

A businessman in Mumbai was running a successful manufacturing business for the real estate trade, had nine business loans and two car loans and was paying a total EMI of ₹6,75,899 per month. Due to the downturn in the real estate market the announcement of demonetization and introduction of GST, which all had a very big impact on his business and in time was unable to service his loans. After missing his EMIs he experiences undue harassment from his creditors, that he was unable to handle, causing him extreme mental depression and was having suicidal ideation.

He approached us for help and enrolled onto our CIDA, and within a week our Advocates were able to stop the harassment. All his creditors calls were taken by our Advocates, who also successfully dealt with all his legal notices that he had received prior to enrolling on to the CIDA.

Thereafter our financial advisors and Advocates have successfully restructured five of his business loans with three months moratorium period (EMI holiday) before he starts to pay his lower business EMI.

We also negotiated settlement of the other four business loans to be paid over four instalments and restructured his car finance and now his total EMI that we have arranged for him is ₹1,43,000 per month on the five restructured loans, reducing the EMI by 42% and we have negotiated a settlement of 51% discount on the remaining four loans which was 19 lacs to a settlement of 9.7 lacs.

We were able to successfully restructure his five business loans and four settlement within four weeks of enrolling onto CIDA. He is now able to concentrate on his business and able to service his financial commitment.