High-debt companies face risk of default amid coronavirus spread: Analysts

CFOs, analysts say moratorium on interest is key to tide over crisis

Some of India’s highly indebted companies will find it difficult to service interest payments on loans if the Centre does not offer moratorium on interest payments for the next six months, say leading chief financial officers and analysts.

Analysts said while some companies like Reliance, Larsen & Toubro, and Tata Steel will be able to meet their liabilities due to adequate cash flow, telecom, airline, real estate, and automobile companies will find it difficult to meet interest liabilities. A moratorium on interest payments will help companies pay their suppliers and keep the cycle running.