Cement, Energy and Environment

-("1f11 IJ - (!i0'6 3 (ii)) 11 12. Restructuring Referred by the Committee to the Enter prise Debt Restructuring Cell ( 1) If the Committee decides to refer the account to Enterprise Debt Restructuring Cell after a decision to restructure is taken the following procedure may be followed. (a) As the preliminary viability of account has already been decided by the Committee, Corporate Debt Restructuring I Enterprise Debt Restructuring Cell shall directly prepare the Techno-Economic Viability study and restructuring plan in consultation with Committee within thirty days from the date of reference to it by the Committee. (b) For accounts with Aggregate Exposure of less than Rs.l 0 crore, the above-mentioned restructuring package should be submitted to Enterprise Debt Restructuring Empowered Group for approval. (c) Under extant instructions, Enterprise Debt Restructuring Empowered Group can approve or suggest modifications but ensure that a final decision is taken within a total period of ninety days, which can be extended up to a maximum of one hundred and eighty days from the date of reference to Enterprise Debt Rcstrucwring Cell. (d) The cases referred to Enterprise Debt Restructuring Cell by Committee shall have to be finally decided by the Enterprise Debt Restructuring Empowered Group wi thin the next thirty days. If approved by Enterprise Debt Restructuring Empowered Group, the restructuring package shall be approved by all lenders and conveyed to the borrower within the next thirty working days for implementation. (2) For accounts with Aggregate Exposure of Rs.IO crore and above. the Techno-Economic Viability s tudy ancl Independent Evaluation Committee of experts. (3) The composition and other details of the Independent Evaluation Committee would be communicated separately by Indian l3anks Association to banks. The Independent Evaluation Committee will look into the viability aspects after ensuring that the terms of restructuring are fair to the lenders. (4) The Independent Evaluation Committee shall give their recommendation in these aspects to the Enterprise Debt Restructuring Cell under advice to Committee within a period of thirty days. (5) Considering the views of Independent Evaluation Committee if the Committee decides to go ahead with the restructuring, the same shall be communicated to Enterprise Debt Restructuring Cell and Enterprise Debt Restructuring Cell shall submit the restructuring package to Enterprise Debt Restructuring Empowered Group within a total period of seven days from receiving the views of Independent Evaluation Committee. (6) Thereafter, Enterprise Debt Restructuring Empowered Group shou ld decide on the approval or modification or rejection within the next thirty working days. (7) If approved by Enterprise Debt Restructuring Empowered Group, the restructuring package shall be approved by all lenders and conveyed to the b<?rrower within the next thirty working days for implementation. 13. Conditions Rchtting to Restructuring by Committee and Enterprise Debt Restructuring Cell ( 1) Under this rramework, the rcstntcturing package shall stipulate the timeline during which certain viability milestones such as improvement in certain financial ratios afier a period of6 months may be achieved. (2) The Committee shall periodically review the account for achievemenVnon-achievement of milestones and shall consider initiating suitable measures including recovery measures as deemed appropriate. (J) Any restructuring under this Framework s hall be completed within the specified time periods. (4) The Comm ittee and Enterprise Debt Restructuring Cell shall optimally utilise the specified time periods so that the aggregate time limit is not breached under any mode of restructuring. (5) If the Committee or the Enterprise Debt Restructuring Cell takes a shorter time for an activity as against the prescribed limit, then it can have the discretion to utilise the saved time for other activities provided the aggregate time limit is not breached. (6) The general principle of restructuring shall be that the stakeholders bear the first loss rather than the debt holders. The Committee or Enterprise Debt Restructuring Cell may consider the fo llowing options, when a loan is restructured- (a) possibility of trdnsferring equity of the company by promoters to the lenders to compensate for their sacrifices; (b) promoters infusing more equity into their companies; 69