INSUBCONTINENT EXCLUSIVE:
have a moderate degree of safety regarding timely servicing of financial obligations.The RBI in its revised framework had said that all
resolution plans involving restructuring or change in ownership for large accounts where the aggregate exposure of lenders is Rs 100 crore
for the residual debt from one or two CRAs shall be considered for implementation, RBI had said."With stressed debt of over Rs 50,000 crore
under ICE framework, banks have to take a haircut in the range of 40-60 per cent to achieve a rating of RP4," according to the report.It
plan for 32 stressed assets under the corporate insolvency resolution process (CIRP) as on June 30, with resolution to the tune of Rs 50,000
crore against total claims of Rs 89,400 crore admitted by financial and operational creditors.The average resolution timeline for these 32
timeline for resolution will increase investor confidence in the domestic corporate bond market.The report further said that the IBC is
expected to promote a market for unsecured financing."That is because the distribution waterfall of recoveries following liquidation gives
unsecured financial creditors (apart from all secured creditors) precedence over government dues," it said.According to the report, some of
the challenges in effective implementation of IBC are infrastructure issues, adherence to resolution timelines, liquidation impact,
implementation of the IBC over the medium term and achieve the intended outcomes," it added.
