Debt recast, demand pick-up to help overcome mismatch in cash flow: Ind-Ra

The proposed debt restructuring programme and a gradual pick-up in demand will help stressed borrowers overcome cash flow mismatches due to Covid-19, stemming from short-to-medium-term liabilities, according to India Ratings.

The rating agency said, “It expects capital market instruments to continue to be serviced, given the diversified nature of holdings and different class of investors”.

The creditors are expected to have a uniform view and the treatment to remain consistent for any restructuring being sought for non-convertible debentures/bonds.

The agency has collated a list of frequently asked questions (FAQs) to put forth its methodology to evaluate the implications of restructuring