Just days after Fitch downgraded Anil Ambani-owned Reliance Communications (RCom) saying loan default is a real possibility, lenders will meet on Friday to discuss restructuring proposals for the debt-ridden firm.
The restructuring proposals could look at all available recast tools like corporate debt restructuring (CDR), strategic debt restructuring (SDR) and Scheme for Sustainable Structuring of Stressed Assets (S4A), said one banker on condition of anonymity.
Under SDR, banks have the ability to convert part of their debt in a stressed company to 51% equity, allowing them to take operational control and sell the company to a suitable buyer. Under S4A, banks can break up the debt into sustainable and unsustainable halves, allowing deep …
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