ARCs say signing the inter-creditor agreement will be a challenge
ICA mandated by the RBI was earlier recommended by the Sashakt committee and signed by 36 financial institutions in 2018
The challenge with the new circular will be signing the ICA on a case-to-case basis, Eshwar Karra, CEO, Kotak Special Situations Fund
Mumbai: Asset reconstruction companies believe that the challenge with the new circular on debt restructuring will be signing the inter-creditor agreement with all lenders. According to the Reserve Bank of India’s new framework for stressed assets, banks and non-banking finance companies have to enter into an ICA within 30 days of borrower default.