Corporate-Debt Restructuring

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  • Topic: Bankruptcy, Finance, Debt
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  • Published : March 10, 2013
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A SUMMER INTERNSHIP REPORT
ON:
RESTRUCTURING INCLUDING CORPORATE-DEBT RESTRUCTURING

TOWARDS THE PARTIAL FULFILLMENT
TO GRADUATE DEGREE IN ECONOMICS (HONS.)

FACULTY GUIDE SUBMITTED BY Prof. DR. Gargi Bandyopadhyay Debamalya Mazumder A6018210035 2010-2013

AMITY SCHOOL OF ECONOMICS
AMITY UNIVERSITY
UTTAR PRADESH

AKNOWLEDGEMENT:
I take this opportunity to present my vote of thanks to all those guidepost who really acted as lightening pillars to enlighten my way throughout this project that has led to successful and satisfactory completion of this study. I am highly obliged to Mr.S.K. Saha (MD of SK Global Services Ltd.) for providing me an opportunity to work as a trainee in his esteemed organization. I owe my thanks to Mr.Parimal Bhowal(Sr. Vice President of Corporate Finance Group) & Mr. Anup Kumar Goswami(Relationship Manager of Corporate Finance Group) for guiding me in the industry and showing how work is done in a financial consultancy. I owe my gratitude towards Dr. Gargi Bandopadhyay my faculty guide and head of institution for guiding me through my Summer Training and guiding me making this report.

Contents:

TOPIC| PAGES|
INTRODUCTION| 4-6|
(QUESTIONNARE)Issues raised during Restructuring process| 6-11| LITERATURE SURVEY:Debt Restructuring Mechanism for Small & Medium Enterprises(SME’s) of Canara Bank| 11-13| RESEARCH METHODOLOGY| 14|

ANALYSIS & INTERPRETATION:Corporate Debt Restructuring(CDR)| 15-32| Examples of CDR in INDIA| 32|
CASE STUDY| 33-71|
Conclusion &Bibliography| 72|

INTRODUCTION:
What is Restructuring?
Restructuring is the act of reorganizing business structures. Restructuring may also refer to:
* Debt restructuring, the reduction and renegotiation of debt * Economic restructuring, the phenomenon of urban areas shifting their economic base from manufacturing to the service sector * Cognitive restructuring, a process in cognitive therapy with the goal of replacing irrational beliefs with more accurate and beneficial ones * Physical restructuring, the transfer, consolidation and closure activities of manufacturing plants Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons for restructuring include a change of ownership or ownership structure, demerger, or a response to a crisis or major change in the business such as bankruptcy, repositioning, or buyout. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring. Executives involved in restructuring often hire financial and legal advisors to assist in the transaction details and negotiation. It may also be done by a new CEO hired specifically to make the difficult and controversial decisions required to save or reposition the company. It generally involves financing debt, selling portions of the company to investors, and reorganizing or reducing operations. The basic nature of restructuring is a zero sum game. Strategic restructuring reduces financial losses, simultaneously reducing tensions between debt and equity holders to facilitate a prompt resolution of a distressed situation. Corporate debt restructuring is the reorganization of companies’ outstanding liabilities. It generally a mechanism used by companies which are facing difficulties in repaying their debts. In the process of restructuring, the credit obligations are spread out over longer...
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