In an interview with CNBC-TV18, Kumar Saurabh Singh, Partner at Khaitan & Company and Sanjeev Krishnan of PWC India and Uday Bhansali of Deloitte shared their views and outlook on the National Company Law Tribunal (NCLT) resolutions.
It was end June that the Reserve Bank of India (RBI) asked banks to take 12 leading defaulters accounting for 25 percent of bad loans to the National Company Law Tribunal (NCLT). They get 180 days to resolve the cases in the NCLT. So if the cases were filed from July 1st to July 15th, now in the month of January, the six months end. They are able to renew it for another three months or 90 days but this is a very good point to take a status check on how did the six months elapsed, were the resolution professionals able to handle the companies, did they face any problems and how good are the bidders, how good are the bids?
In an interview with CNBC-TV18, Kumar Saurabh Singh, Partner at Khaitan & Company, Sanjeev Krishnan of PWC India and Uday Bhansali of Deloitte shared their views and outlook on the same.
We will know only when resolution plan comes out. The amount of debt in stressed companies is well-known and resolution plan should be composite, said Krishnan.
According to him, resolution plans should be known by mid-February.
We are entering a very exciting phase with respect to recast of stressed companies. Many resolution cases are seeing bid deadline extensions, said Bhansali.
There is an expectation that there is going to be some further provisions coming in the Union Budget as far as it pertains to the Insolvency and Bankruptcy Code (IBC) and the bidding process and the lenders, he further mentioned.
Banks have to be realistic in the assets that they are looking to put in insolvency. A lot of time has passed and it is very likely that it may be lower than 50 percent but it may still be a lot of interest if you are able to right-size the debt and address the capital structure, said Singh.For entire discussion, watch accompanying video...