<b>Letters:</b> Gauging intentions

This indicates there might be lack of diligence in credit appraisal

The article, “Throwing good money after bad” (June 8) by Rajeswari Sengupta and Anjali Sharma, discusses a key concern: What prompted lenders to finance “economically unviable” firms which did not have a non-performing asset recovery mechanism in place? 

Has Corporate Debt Structuring (CDR), a voluntary non-statutory system introduced in 2001, failed to reorganise the outstanding obligations in relation to cases of substandard and/or doubtful accounts within the stipulated period?

While CDR allows a distressed company with two or more lenders and a debt of more than Rs 10 crore to restructure into equity or preference capital, average borrowing by category 2 and