Goldman, Cerberus buy rare Indian junk-bond by Kesoram Industries offering 21%:

Goldman Sachs Group Inc., Cerberus Capital Management and Edelweiss Financial Services Ltd. bought into a junk-rated rupee bond with credit rating of D (ratings by CRISIL), issue yielding as much as 21%. This three companies has invested in the Rs 1,600-crore issuance from Kesoram Industries Ltd. through various vehicles and carry coupon that increases in stages the longer they are outstanding.
Kolkata-based Kesoram, whose history dates back over 100 years defaulted on its debt last year and is working to restructure repayments. And in this month kesoram-a cement manufacturer has allotted equity shares and preference securities to 10 creditors as part of its plan to restructure debt. Proceeds from this bond sale will be used in part to repay existing loans and overdue liabilities. The investments reflect growing interest in Indian distressed assets
With this new issue of bond they hadn’t complied any financial covenants to protect the bond holders and has defaulted on ₹460 crore of debt as of Dec. 31, the company said in a statement last month.