Lowy Warns on India ‘Financing Catastrophe’
11 November, 2019
Crunch Time for Japan’s Banks
4 December, 2019

Euromoney, November 15 2019

The country’s Supreme Court overturns a curveball decision from July, to the benefit of distressed debt investors

India’s Supreme Court has set aside a controversial judgement that had threatened to kill India’s distressed debt market before it started.

As Euromoney reported in July, the National Company Law Appellate Tribunal had thrown the restructuring of Essar Steel into chaos by going against established practice and determining that secured and unsecured creditors should be treated equally.

That meant it would make no difference whether creditors held collateral or not.

The Essar Steel restructuring is seen as a litmus test for India’s attempts to speed up the resolution of failed businesses that are weighing down on India’s public-sector lenders, and therefore stopping them from lending and impeding growth in the economy.

Some professionals felt that the July ruling would undermine the whole restructuring process, not just for Essar Steel but for any later deals.

Read the full article here: https://www.euromoney.com/article/b1j19g03t1mz1n/india-reverses-course-on-essar-steel-decision?copyrightInfo=true

Chris Wright
Chris Wright
Chris is a journalist specialising in business and financial journalism across Asia, Australia and the Middle East. He is Asia editor for Euromoney magazine and has written for publications including the Financial Times, Institutional Investor, Forbes, Asiamoney, the Australian Financial Review, Discovery Channel Magazine, Qantas: The Australian Way and BRW. He is the author of No More Worlds to Conquer, published by HarperCollins.

Leave a Reply

Your email address will not be published. Required fields are marked *