| Date: |
09-05-2002
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| Notification No: |
RBI Notification No 101/2002
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| Issuing Authority: |
RBI
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| Type: |
Notification
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| File No: |
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| Subject: |
Corporate Debt Restructuring
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Corporate Debt Restructuring
DBOD
No. BP. BC 101 - 21.01.002 - dated 9th May 2002
Please
refer to paragraph 132 in the �Statement on Monetary and Credit Policy for the
year 2002-03� enclosed to Governor�s letter No.MPD.BC.214/07.01.279/ 2001-02
dated April 29, 2002.
2.
Guidelines on Corporate Debt Restructuring (CDR) were issued vide our
circular DBOD.BP.BC.15/21.04.114/2000-01 dated August 23, 2001 for putting in
place a framework outside the purview of BIFR, DRT and other legal procedures
for restructuring debts of viable corporate entities facing financial problems.
As proposed in the Union Budget 2002-03, RBI constituted a High Level Group
(Chairman: Shri Vepa Kamesam, Deputy Governor) to review the operations of the
CDR scheme to identify the operational difficulties, if any, in smooth
implementation of the scheme and to suggest measures to make the scheme even
more effective. As an interim measure, it has been decided that permission for
corporate debt restructuring will be made available by RBI on the basis of
specific recommendations of CDR �Core-Group�, if a minimum of 75 per cent
(by value) of the lenders constituting banks and FIs consent for CDR,
irrespective of differences in asset classification status in banks/ financial
institutions.
3.
Please acknowledge receipt.
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