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There are some NBFCs and High networth individuals who can rescue the unit and lend money for short period but at higher cost. Since banks don't support, this is most common method to raise money and settle with the banks. Also there are structured funding available in the market against specific order, contacts or sales under escrow mechanism to give some breathing to the stressed unit. |
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| ii |
Sale of non core assets is another option if the lending institutions permit because most of the assets are under the charge of the lending institutions. This may help to a great extent in reviving the unit. |
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| iii |
Private equity is another major source if there is good potential in the unit. |
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| Above options are in addition to the support of available from the existing bankers. Banks resist but if convinced can look into revival proposal positively. Most of the revival/restructuring proposals have failed due to very impractical approach . The revival is based on more theoritical approach than practical thinking. Recently RBI has come out with Flexible restructuring scheme under which for certain segments, the loans can be restructured for 25 years too. |
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| B |
Survival Options : |
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Legal remedy is always available if there is injustice to the stressed units. If the unit is in operation, the courts take positive view and help ion revival also. |
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Overall, the NPA declaration is not the end, there are lot of options available if properly handled. |
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C P |
