Stressed firms race to sell assets

Jaypee, Essar, and Reliance Communications expect transactions to close by September

With the Reserve Bank of India (RBI) identifying 12 companies for the Insolvency and Bankruptcy Code (IBC), the stage looks set for financially stressed companies to fast-track their asset sales so they can repay debt on time. 

Among large accounts, Jaypee group, Essar group, Reliance Communications and Videocon have announced transactions to reduce debt but these deals have not closed as yet. "Even before RBI action, promoters and banks were in discussions to find an amicable solution to reduce debt. Everyone wants to end this issue fast as it takes away the management's focus from businesses. Few companies fell into the