“With the Essar Steel judgment out, it has now become easier for distress asset transactions to happen. “The Essar mandate clearly has lifted investment sentiment for global investors seeking opportunities in India,” said Rashesh Shah, CEO, Edelweiss group that runs a stressed asset fund of $1.3 billion. The Committee of Creditors’ authority is also established.The Ruias-promoted Essar Steel was admitted to the National Company Law Tribunal , Ahmedabad, in August 2017. “The Essar judgement has upheld the sanctity of a capital structure,” said Rahul Chawla, managing director at Deutsche Bank . “The business of non-performing assets needs both capital and the ability to resolve bad loans,” said Shah from Edelweiss.

Source: Economic Times November 17, 2019 23:37 UTC