Wednesday, April 16, 2014

CDR Cell: Pvt Sector Players will have to share the working capital needs of distressed companies

Bickering between the private sector and state- owned lenders has forced the Corporate Debt Restructuring (CDR) Cell to ask all banks, including private ones, to extend working capital funding to companies whose loans are getting restructured. Private sector lenders participate in the revival programmers of distressed companies, but usually decline to lend for their working capital. This puts a disproportionate burden on state-owned lenders as they end up meeting the entire working capital requirement.

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