Kamath panel recommendations: 1,027 listed firms eligible for debt recast

A total of 1,027 listed firms, with a combined gross debt of Rs 30.1 trillion as of March 2020, are eligible for corporate debt restructuring based on the K V Kamath panel’s recommendations. These exclude banks, insurers, and NBFCs. However, the June quarter results of these entities suggest that close to 40 per cent of them may require some forbearance. 

This is on account of the sharp fall in revenues and profits during the April-June period, which has made debt servicing difficult. Of these, 406 firms reported an interest coverage ratio (ICR) of less than 1.5x for the April-June period.