This exposes many defaulters to bankruptcy courts by mid-August, posing the threat of loss of control to many promoters. Given the situation, distressed funds are putting alternative strategies in place. “Funds are using an asset reconstruction company (ARC) to warehouse the acquired loans. “Status quo is no longer an option,” said Nachiket Naik, managing director at IREP Credit Capital, a Mumbai-based private credit fund. “To pay off lenders under OTS, funds will have to make an equity investment in the firm, which then pays off the lenders.
Source: Mint June 17, 2018 17:26 UTC