After SC verdict, asset reconstruction firms' wait for returns get longer

Asset reconstruction companies (ARCs), which were in an advanced stage of investing in various stressed companies, will have to wait longer for returns, as all stakeholders go back to the drawing room on debt resolution. This comes at a time when the government is toying with the idea to launch a new asset reconstruction company for the power sector, which is saddled with bad loans worth Rs 2.5 trillion.
 
Analysts said the Supreme Court judgment will slow the pace of loan resolutions that were previously subject to deadlines outlined in the February 12 circular. Most of these loans are