COVID-driven travel restrictions and social distancing have had an immediate and dramatic impact on the cashflows of many corporate and SMEs, from airlines to retailers to restaurants. Banks are already being inundated with requests for credit and must make urgent and “distressed” credit decisions. Near-term bank decisions on how to respond to clients’ financing needs will have a huge impact on the economic consequences of the crisis, including whether companies survive and continue to employ staff. Restructuring of accounts under stress not only enables the corporate to continue in business but also support the employees for their continuous employment. The exercise of restructuring shall help in restoring falling confidence of business community as well as employees under distress Different techniques need to be adopted for different borrowers like conversion of debt, treatment of core sector project with long economic life and assets under severe stress.
