In 2021, DUS Operating, Inc., a leading automotive solutions company, acquired the Indian subsidiaries of Dura Automotive Systems, LLC, as part of a global asset purchase, through a bankruptcy proceeding in the US, for US$84 million. This deal allowed DUS Operating to enhance its global presence, particularly in the emerging automotive market in India. Majmudar & Partners helped navigate the complex regulatory environment in India and ensured compliance with all applicable Indian laws, especially as the buyout was through a bankruptcy proceeding in the US.
Facilitating the Transaction
Majmudar & Partners served as Indian legal advisors to DUS Operating, Inc., providing essential guidance on Indian law to ensure the deal’s successful closure. The firm’s involvement included:
- Due Diligence: Conducted thorough due diligence on Dura Automotive’s Indian subsidiaries, reviewing and assessing the legal, regulatory, and related risks associated with the acquisition.
- Regulatory Compliance: Navigated the complexities of Indian regulations, ensuring compliance with Insolvency and Bankruptcy Code (IBC) and other legal frameworks governing foreign investments in India.
- Cross-border Structuring: Assisted DUS Operating in structuring the transaction in line with both Indian and US bankruptcy laws, facilitating a smooth asset transfer.
- Contract Negotiation: Reviewed and negotiated transaction documents, including purchase agreements and post-acquisition operational agreements, to protect DUS Operating’s interests in India.
DUS Operating’s acquisition of Dura Automotive Systems’ Indian subsidiaries was a strategically important deal that expanded its global reach and strengthened its manufacturing capabilities. The deal highlights the potential for growth through distressed asset purchases, especially in key markets such as India. Majmudar & Partners played an essential role in facilitating the transaction, ensuring compliance with Indian regulations and managing the legal complexities of the acquisition.
With extensive experience in handling cross-border M&A transactions, Majmudar & Partners is well-equipped to provide legal counsel for companies seeking to expand their operations in India and beyond. Contact us today to learn how we can support your company in navigating complex global asset purchases and regulatory challenges.