Page 35 - BANKING FINANCE November 2018

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v Resolution or such loans should e non discretionar v RCs could also tie u ith MCs to o erate and
nondiscri inator and co leted in a ti e ound turnaround the asset
anner i e da s
v anks a also ush or creation o a lat or or
trading assets
Fo assets et een Rs 50 500 o es e osu e
n o ed Rs s
ro le a ea
v he lead lender should take charge and de ise a
hough the anel has stri ed hard to co e u ith a good
resolution lan ithin da s
solution c nics ha e their o n dou ts hich a e
v he lead lender ill e hel ed large anks i
alle iated onl o er a eriod o ti e de ending on the
re uired
success o the sche e ollo ing are a e oints hich are
v inancial institutions ill enter into an nter Creditor orth noting
gree ent to authori e the lead ank to i le ent a v ne o the ajor ro le s in the e isting tool i e C
resolution lan in da s he agree ent is the as to ind in estors ith su icient unds and
edrock o the ank led resolution a roach R or intention ho could in est in stressed assets he
loans et een Rs crores his inter creditor re ise o this ne sche e is also that s ill e
agree ent ill e a legal docu ent and en orcea le created he uestion is hether e ill get suita le
in an court o la in estors to und the s
v he resolution lan should e a ro ed lenders v anks ere al a s inclined on the turnaround o the
holding at least de t stressed assets RCs ere also orking on the sa e
he ne sche e en isages that MC ill conduct
Fo assets o t o e Rs 500 o es e osu e o erational turnaround o the asset itsel or
n o ed Rs s engaging an e ternal e ert t is et to e seen hat
v n MC structure ill e created di erence the ne attern ill e a le to ring orth
v Multi le MCs are likel to e created v he ain ro le earlier as that anks al a s
anted a etter rice o the asset hile RCs anted
v MC to e or ed ith e uit in usion ro anks
to u at thro a a rices n the ne sche e
oreign unds in rastructure in est ent unds
creation o a trading lat or has een suggested ut
v lternati e in est ent unds ill e created
that trading ill co e into icture onl a ter asset has
institutional in estors
een sold to RC hus the ro le o rice haggling
v s ill und MCs to u stressed assets ro the re ains sa e
anking sector
v he anel esti ated that u lic sector lenders ill need
v anks a also in est in s to ta into u side on the Rs lakh crores o er a t o ear eriod to deal
asset later ith resolution o ailing co anies hile the
o ern ent ill ro ide Rs crores the re aining
v MCs ill a oint industr e erts and turnaround
a ount is to e arranged anks anks are alread
s ecialists to hel resol e the stressed asset
acing ca ital crunch s such the a out or the is
v RC ill issue securit recei ts hich ill e su scri ed
to sell o non core assets nother o tion or the is
the s
v hus unds recei ed ro s ill e utili ed RCs
to re a anks
v RCs ill re a securit recei ts in ull ithin da s
to ank
v RCs ill also e allo ed to id or assets through a
trans arent auction rocess

B N N N N E | NOVEMBER | 2018 |