MUMBAI/KOLKATA: Resolution professionals, a key constituent of bankruptcy proceedings under Indias new law, are caught between term loan lenders who want sick companies to be liquidated and working capital lenders who favour restructuring the company, four people dealing with resolution of sick companies told ET.
The trouble might be that the law does not make a difference between the two, term loan lenders and financial lenders, and puts them on equal footing. However, the former have their loans secured and have the first charge of assets of a company that goes under.
In case of liquidation, term loan lenders with secured loans are backed by assets and they enjoy the first charge on these assets. Working capital lenders would be in…
Read the full article at: http://economictimes.indiatimes.com/news/economy/policy/how-resolution-professionals-prepare-to-face-a-new-fight-of-creditors/articleshow/59390882.cms
