Date:01/06/2004 URL: http://www.thehindubusinessline.com/2004/06/01/stories/2004060101250800.htm

Back Rs 36,600-cr corporate debt rejig packages implemented

Our Bureau

Kolkata , May 31

SINCE the introduction of the Corporate Debt Restructuring (CDR) mechanism, which is applicable to impaired corporate debt cases involving several banks with an aggregate principal exposure of Rs 20 crore or more, a total of 127 cases have been taken up for review.

Out of the 127 cases, 82 have been approved for restructuring with overall exposure of about Rs 62,000 crore to the country's financial system. The restructuring packages in respect of 42 cases, with an aggregate debt of Rs 36,600 crore, have been fully implemented. This was revealed at a seminar on CDR mechanism organised here jointly by the Indian Banks Association (IBA) and CDR Cell of the Industrial Development Bank of India (IDBI).

In his keynote address, Mr O.N. Singh, Chairman & Managing Director of Allahabad Bank, explained the background and development of the CDR mechanism. Mr Singh particularly emphasised the need for timely implementation of the approved CDR packages. There should be scope for the modification in the mechanism if such modification enhanced its efficacy, he added.

Mr J.N. Godbole, Executive Director of IDBI, and Mr A.L. Bongirwar, Deputy General Manager of CDR Cell of IDBI, dwelt at length on the background, objective and the process and framework of CDR and the need for strengthening it further.

Mr S.K. Khasnobis, President & Chief Operating Officer, Asset Reconstruction Company (India) Ltd, explained the present scenario of bank restructuring and the role of asset reconstruction companies in the context of new legal framework and policies.