Cement, Energy and Environment

10 THE GAZETTE OF INDIA : EXTRAORDINARY (PART II- SEC. 3(ii)) (2) If the existing promoters are not in a position to bring in additional funds the Committee may allow the enterprise to raise secured or unsecured loans and create charge on its assets for such loans: Provided further, the Committee may, with the consent of all creditors recognised under Paragraph 4 (7), provide such loans higher priority than any existing debt. 9. If the Committee decides on options (4) (i) or (ii), but the account fails to perform as per the agreed terms under option (4) (i) or (ii), the Committee shall initiate recovery under option (4) (iii). 10. If the Committee decides restructuring of the account as Corrective Action Plan, it will have the option ofeither referring the account to Enterprise Debt Restructuring Cell after a decision to restructure is taken or restructure the same independent of the Enterprise Debt Restructuring mechanism. II. Restructuring by Committee ( 1) If the Committee decides to restructure an account independent of the Enterprise Debt Restructuring mechanism, the Committee shall carry out the detailed Techno-Economic Viability study, and if found viable, finalise . the restructuring package within thirty days from the date of signing off the final Corrective Action Plan as mentioned above. (2) For accounts with Aggregate Exposure of less than Rs.IO crore, the above-mentioned restructuring package shall be approved by the Committee and conveyed by the lenders to the borrower within the next fifteen days for implementation. (3) for accounts with Aggregate Exposure of Rs. I0 crore and above, the above-mentioned Techno-Economic Viabi lity study and restructuring pacl,agc shail have to be subjecte\1 to an <:valuation by an Independent Evaluation Committee of experts fulfilling certain eligibility conditions. (4) The Independent Evaluation Committee shall look into the viability aspects after ensuring that the terms of restructuring are fair to the lenders. (5) The Independent Evaluation Committee shall give their recommendation in these cases to the Committee within a period of thirty days. _ 1 (6) Thereafter, considering the views of Independent Evaluation Committee, if the Committee decides to go ahead with the restructuring, the restructuring package including all terms and conditions as mutually agreed upon between the lenders and borrower, shall be approved by all the lenders and communicated to the borrower within next fifteen days for implementation. (7) Asset Classification benefit as applicable under the extant guidelines shall accrue to such restructured accounts as if they were restmctured under Enterprise Debt Restructuring mechanism and for this purpose, the asset classification of the account as on the date of formation of Committee shall be taken into account. (8) The above-mentioned time limits are maximum permitted time periods and the Committee shall try to arrive at a restructuring package as soon as possible in cases of simple restructuring. (9) Rcstmcturing cases shall be taken up by the Committee only in respect of assets reported as Standard, Special Mention Account or Sub-Standard by one or more lenders of the Committee. (I 0) The Committee shall have the discretion to consider restructuring of the debt, where the debt is doubtful i.e., the account is Standard or Sub-Standard in the books of majority ofcreditors (by value). ( II) Willful defaulters shall not ~e eligible for restructuring: Provided that the Committee may review the reasons for classification of the borrower as a willful defaulter and satisfy itself that the borrower is in a position to rectify the willful default and the decision to restructure such cases shall have the approval of the board of concerned bank within the Committee who has classified the borrower as willful defaulter. (12) (a) The viability of the account shall be determined by the Committee based on acceptable viability benchmarks determined by them. (b) The parameters may include the Debt Equity Ratio, Debt Service Coverage Ratio, Liquidity or Current Ratio and the amount of provision required in lieu ofthe diminution in the fair value of the restructured advance, etc. (c) The Committee may consider the benchmarks for the viability parameters adopted by the Enterprise Debt Restructuring mechanism and adopt the same with suitable adjustments taking into account the fact that different sectors of the economy have different performance indicators.