The Hindu Business Line : `Make CDR norms borrower-friendly'

THE Reserve Bank of India should consider amending Corporate Debt Restructuring (CDR) guidelines in a manner that makes the process borrower-friendly, the PHD Chamber of Commerce and Industry (PHDCCI) has suggested.

In a representation to the RBI, the PHDCCI has stated that a series of corrections in the existing guidelines is imperative to ensure that the process of debt restructuring is not only speeded up but hindrances in the creation of the rehabilitation process are also removed.

The PHDCCI has suggested that once a debt-restructuring package has been approved by 75 per cent of the creditors by value, those banks/institutions that have not joined as members be compelled to take all procedural steps, including completion of documentation, necessary for implementation of the package.

The eligibility requirement of "60 per cent of the lenders in number" should be in the alternative rather than in addition. It could indeed be inequitable if small lenders, who constitute little in terms of value, succeed in holding up the entire process of restructuring by being larger in numbers.

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`Make CDR norms borrower-friendly'