Firms, lenders ask RBI to extend Dec 13 insolvency deadline

With time running out for a resolution of the second list of non-performing assets (NPAs) on the Reserve Bank of India (RBI) list, lenders and corporate bodies have approached the central bank for extending the December 13 deadline, reports Business Standard. If debt resolution is not finalised by December 13, 2017 for the 28 companies on the list, insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) will be initiated.

The debt exposure of these companies would be more than Rs 1 lakh crore. “No major progress has been made so far in debt resolution for the 28 accounts. Hence, some banks have sought an extension of the deadline,” said the head of a public sector bank. “If the deadline is not extended, most of the cases will go to the National Company Law Tribunal (NCLT). The kind of deadline being put on the table is not acceptable to the banks. So, decision-making is very difficult at this stage,” he said.

Credit: Business Standard