|Photo: Live Mint|
According to this scheme, titled 'Scheme for Sustainable Structuring of Stressed Assets', accounts that are worth Rs.500 crore or more and have already started commercial operations will be eligible for the new recast scheme. Only those promoters who have shown no malfeasance in their actions while running the show can ask for the permission to continue with the management, even if they get reduced to minority shareholders in the process.
This scheme, will help the debt ridden companies not only to improve their cash flows, but it will also give them a cushion against, distress selling of assets.
Just imagine what will happen, if a company instead of selling an asset at a distress price, goes for churning money out of, albeit with the aid of the banks (or the lenders). Will it not be a GAME - CHANGER for those debt laden companies? It is precisely one of the main reasons, due to which the stocks of debt-ridden companies are moving-up, since the last few days; apart from other factors.