By Satish Kumar Gupta
In August 2020, to mitigate the financial stress faced by borrowers on account of the economic fallout of the Covid-19 pandemic, RBI issued a circular on Resolution Framework for Covid-19-related Stress (Covid Resolution Framework-CRF). CRF enables lenders to implement a resolution plan in respect of eligible borrowers without a change in ownership while keeping such exposures as standard.
It is imperative that the lenders must formulate and implement resolution plans keeping in mind the experiences gained as described during the implementation of Corporate Debt Restructuring (CDR), earlier RBI restructuring schemes and insolvency process under the Insolvency & Bankruptcy Code, 2016 (IBC).
Firstly, the utilization of a…
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