NEW DELHI, FEB 4: In a growing sign of companies facing difficulties in meeting their financial obligations, banks were approached for debt restructuring in a record 126 cases during 2012 for a collective amount of Rs 84,000 crore (over $15 billion). During the last quarter ended December 31, 2012 itself, a total number of 25 cases were referred for Corporate Debt Restructuring (CDR) for an aggregate amount of over Rs 20,000 crore, shows the data available with the CDR cell of bankers.
RBI had helped set up CDR system in 2001 to help the corporates facing financial difficulties due to “factors beyond their control and due to certain internal reasons.” Besides helping the corporates manage their huge debts, it also seeks to safeguard the interest of banks and financial institutions through restructuring of certain debt cases. High interest costs, along with overall sluggishness in domestic and global economies have made it difficult for the companies to meet their debt obligations, which in turn have resulted in a spurt in CDR cases.
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