Going forward, the ruling is also expected to alter credit assessment frameworks, with lenders likely to reassess the nature of security available while extending loans to telecom companies, bankers said.
A senior banker, speaking on condition of anonymity, said that with this ruling, the recovery from the two corporate insolvency cases — Aircel and Reliance Communications — will suffer. “Whatever the prospect of recovering something was there, that is gone now,” he said, adding that banks will now not be able to recover much.
Aircel had bank dues of over Rs 13,500 crore, while Reliance Communications had dues of over Rs 50,000 crore.
The person also said that for future funding towards telecom…