Hospitality finds little room in Kamath panel's debt restructuring plan

Majority of hotels do not meet the eligibility criteria of the RBI-appointed panel

The KV Kamath Committee’s recommendations on debt restructuring have not helped India’s beleaguered hospitality sector — one of the worst impacted by the pandemic.
 
The Reserve Bank of India (RBI) on September 7, under the ambit of   the Kamath Committee, allowed corporates to avail of loan restructuring for a period of two years, limited to debt distressed solely due to the pandemic. However, the fate of hotel owners with high debt pile continues to hang in balance.
 
Thee parameters set by the committee include total outside liabilities to the adjusted tangible net worth (TOL/ATNW), current ratio, total debt/Ebitda,