Debt recast: Takru to meet top bankers next week

With no let up in the number of companies seeking debt recast from banks, Financial Services Secretary Rajiv Takru will brainstorm with top bankers in Mumbai next week to evolve a framework to separate the wheat from the chaff. Due to concerns that corporates are taking undue advantage of the banking industry-promoted corporate debt restructuring (CDR) cell, the meeting is expected to examine whether an independent oversight committee needs to be constituted to vet debt recast proposals.

OVERSIGHT COMMITTEE

Further, the possibility of having lenders’ representative on the board of the company which is undergoing debt restructuring will also be considered. This will help banks closely monitor the revival of the company. The oversight committee that has been mooted will comprise experts from the fields of finance, law, technology and industry.

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