CORPORATE DEBT RESTRUCTURING: A SOLUTION WITH ITS OWN ISSUES

Abstract In some of the occasion the companies find themselves in difficulty due to factors which are beyond their control. Because of which they are unable to pay the debts. For revival of such corporate and for the safety of the money that is invested by investor, the method of corporate debt restructuring was introduced by RBI. The Corporate Debt Restructuring system covers multiple banking accounts, syndication accounts, where all banks and institution together have an outstanding aggregate exposure of Rs.100 million and above. Even cases filed in Debt Recovery Tribunals/Bureau of Industrial and Financial Reconstruction/and other suitfiled cases are eligible for restructuring. Corporate Debt Restructuring Core group after it get satisfied that the company is unable to pay its debt, grant them the opportunity under Corporate Debt Restructuring.