If an ARC acquires 75 per cent of the secured debt of a borrower, what are the options available to the lenders who have not transferred their debt to the ARCs?

0
Posted

If an ARC acquires 75 per cent of the secured debt of a borrower, what are the options available to the lenders who have not transferred their debt to the ARCs?

0

A. The Guidelines issued by the RBI on sale of NPLs by banks / FIs to ARCs provide that in the case of consortium / multiple banking arrangements, if the banks / FIs holding 75 per cent or more of the debt (by value) of any borrower have accepted the offer of the ARC, the remaining banks / FIs are obligated to accept the offer by the ARC.

Related Questions