Defending Infrastructure Debt: Pledge Injunctions, SARFAESI/DRT Remedies, And Cross-Default Insulation

An agreed refinancing can fail if an existing creditor acts before the new financing closes. Once enforcement rights arise over pledged assets, one creditor’s action can affect control, trigger rights under another financing arrangement or leave the asset unavailable to the new lender. Defending enforcement action is not the problem but dealing with existing creditor rights, releasing the required security and putting the new financing in place before those rights are exercised. The issue arose for an Indian infrastructure and engineering group facing a substantial holding-company maturity in 2026. We have discussed the group’s long-term assets and refinancing pressures here. [Hyperlink – Refinancing Heavy Infrastructure Debt: Managing Maturity Cliffs, Private Credit and High-Value Collateral].