Several airlines, hotels, travel and tourism companies are expected to move their applications for one-time restructuring as soon as the moratorium ends.
With the moratorium announced by the Reserve Bank of India (RBI) ending on August 31, and the cash flows of companies expected to take more time to recover, a large number of firms are planning to take advantage of the RBI’s one-time debt restructuring plan.
Some companies will sell assets to repay loans, and mergers and acquisitions (M&As) will pick up substantially among Indian firms, say bankers.
M&A transactions announced till July-end by India Inc was down to only $56.73 billion (thanks mainly to Jio deals) as compared to $88.8 billion in the corresponding period last year.
Several airlines, hotels, travel and tourism companies are expected to move their applications for one-time restructuring as soon as the moratorium ends.
These companies will look at selling assets, say bankers.
Rating agency CRISIL sees the following scenarios evolving among the Indian companies for rating action: