By Andy Mukherjee
If the very first resolution of corporate debt distress by India’s national company law tribunal is any indication, lenders should probably just write off their bad loans. With a recovery rate of 6 percent, why even jostle to get on creditor committees or pay fat legal bills?
That’s the uncharitable conclusion to draw from the Rs 54 crores ($1.6 million) that creditors will retrieve from Synergies-Dooray Automotive’s total dues of Rs 900 crores, according to tribunal documents. Worse, Synergies Castings Ltd., which acquired Synergies-Dooray, need pay only Rs 20 crores upfront; distressed-debt investors including Alchemist Asset Reconstruction Co., Edelweiss Asset Reconstruction Co. and Millennium Finance Ltd. wil…
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