Cement, Energy and Environment

12 THE GAZETTE OF INDLA : EXTRAORDINARY [PART li-SEC. J(ii)] (c) transfer of the promoters' holdings to a security trustee or an escrow arrangement till turnaround of enterprise to enable a change in management control, if lenders favour it. (7) In case a borrower has undertaken diversification or expansion of the activities which has resulted in the stress on the core-business of the group, a clause for sale of non-core assets or other assets may be stipulated as a condition for restructuring the account, if under the Techno-Economic Viability study the account is likely to become viable on hiving-offof non-core activities and other assets. (8) For restructuring of dues in respect of listed companies, lenders may be ab-initio compensated for their loss or sacrifice (diminution in fair value of account in net present value terms) by way of issuance of equities of the company upfront, subject to the extant regulations and statutory requirements. (9) If the lenders' sacrifice is not fully compensated by way of issuance of equities, the right of recompense clause may be incorporated to the extent ofshortfall. (I0) In order to distinguish the differential security interest available to secured lenders, partially secured lenders and unsecured lenders, the Committee or Enterprise Debt Restructuring mayconsider various options, such as- (a) prior agreement in the Inter Creditor Agreement among the above classes of lenders regarding repayments; (b) a structured agreement stipulating priority of secured creditors; (c) appropdation of repayment proceeds amo11~ ~~l:urcu, partially secured and unsecured lenders in certain pre-agreed proportion. (11) The Cumrnitlc~ ~hall, on request by the enterprise or any creditor recognised under paragraph 4(7), provide information relating to the proceeding as requested by the enterprise or such creditor. 14. Prudential Norms onAsset Classification and Provisioning (I) While a restructuring proposal is under consideration by the Committee or Enterprise Debt Restructuring Cell, the usual asset classification norm shall continue to apply. ) (2) The process of re-classification of an asset shall not stop merely because restructuring proposal is under consideration. (3) The special asset classification benefit on restructuring of accounts as per extant instructions shall be available for accounts undertaken for restructuring under this Framework. IS. Review. (1) In case the Committee decides that recovery action is to be initiated against an enterprise, such enterprise may request for a review of the decision by the Committee within a period of thirty working days from the date of receipt ofthe decision of the Committee. (2) The request for review shall be on the following grounds: (a) a mistake or error apparent on the face of the record; or (b) discovery of new and relevant fact or infonnation which could not be produced before the Committee earlier despite the exercise of due diligence by the enterprise. (3) A review application shall be decided by the Committee within a period of thirty days from the date of filing and if as a consequence of ~uch review, the Committee decides to pursue a fresh corrective action plan, it may do so. 16. Removal of difficulties If any difficulty arises during the course of implementation of this Framework, the same shall be clarified by the Central Government. [F. No. NCEUS CelJ/4/20 I O-Pt.] S. N. TRIPATHI, Jt. Secy. Printed by the Manager, Government of India Press, Ring Road, Mayapuri, New Delhi-I t0064 , and Published by the Controller ofPublications, Delhi-It 0054. 70