sick industries
baswanth mohan paruchuri
(Querist) 01 March 2011
This query is : Resolved
In how many ways can a sick company get financial assistance and what are the remedies can be provided to sick industries under SICA and other related acts.
A K CHANDOK
(Expert) 02 March 2011
Dear Sir,
In my opinion ,if the company is registered with BIFR ,THEN COMPANY MAY HAVE FINANCIAL HELP,as per rehabilitation scheme also.
chandok.
malipeddi jaggarao
(Expert) 03 March 2011
Remedies available to sick company if it is not a willful defaulter are:
a)Rephasement of recovery schedule in term loan accounts for both interest and instalment.
b)Waiver/concessions in interest charged with or without recompense.
c)Funding the unserviced interest/aberrations in the working capital facilities/term loan facilities. (WCTL/FITL)
d)Reduction in margin for funded and non-funded limits.
e)Realignment of limits from pre-sale to post- sale and vice versa or from funded to non-funded limits.
f)Reassessment of the credit facilities including the working capital.
This is called Corporate Debt Restructuring.
