Lenders are racing to avoid a potentially long-drawn insolvency process as all such defaulting projects will proceed for liquidation after 26 August following a recent RBI circular. Photo: Mint
Mumbai: Lenders to Indias stressed coal-based power projects are chasing one-time cash settlements to recover their long-pending loans even at a substantial cut on their dues. Banks are racing against time to avoid a potentially long-drawn insolvency process as all such defaulting projects will proceed for liquidation after 26 August following a recent circular by the Reserve Bank of India. It has led to a rush among lenders to discuss with various parties, including domestic power producers and private equity funds, on exiting the projects.
Banks a…
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