The RESOLUTION FRAMEWORK May be invoked not later than December 31, 2020.
Resolution Plan will be deemed to be invoked when the Lenders representing 75% by value and 60% by number (Majority Lenders) agree to invoke.
Lenders also need to sign the ICA within 30 days of invocation.
The Residual tenor of the loan may be extended by maximum 2 years with or without payment moratorium.
An expert committee under the Chairmanship of Mr. K V Kamath was constituted by Reserve Bank of India, which has submitted its report on September 04, 2020.
The committee observed that following sectors are visible to be impacted due to COVID-19:-
Iron & Steel Manufacturing
Gems & Jewellery
Hotel, Restaurants, Tourism
Plastic Products Manufacturing
Port & Port services
Corporate Retail Outlets
Following Selected parameters have been identified by the expert committee:
• Total Outside Liability / Adjusted Tangible Net Worth
• Total Debt / EBIDTA
• Current Ratio
• Debt Service Coverage Ratio
• Average Debt Service Coverage Ratio
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