Corporate Restructuring

In the last few years as the Indian Economy registered a slowdown on the other hand , Banks have accumulated high levels of stressed loans due to inadequate credit assessments and monitoring. The increasing trend in the number of stressed loans are emanating from Infrastructure, Power sector, Iron and steel, Textiles, Aviation and Mining which contributes to over half of the total stressed loans.

The current approach to manage loans under stress are to apply short term measures and keep the loan current instead of trying to formulate an end to end solution on revival or recovery. For this to happen it may require a management change, further equity infusion , long term debt restructuring or a hassle free liquidation and recovery process in place. This would mandatorily involve Promoters Intention and lenders  pro-active and timely support to revive the business.