Special situation assets include stressed debt, security receipts, and defaulting-company securities, enabling specialised funds to pursue insolvency resolutions. Special situation assets include eligible stressed loans, security receipts issued by Reserve Bank-registered Asset Reconstruction Companies, and ... Summary
Special situation assets include stressed debt, security receipts, and defaulting-company securities, enabling specialised funds to pursue insolvency resolutions.
Special situation assets include eligible stressed loans, security receipts issued by Reserve Bank-registered Asset Reconstruction Companies, and securities of companies connected with stressed loans, security receipts, insolvency proceedings, or continuing payment defaults. Default-related and insolvency-related securities require a "D" or equivalent downgrade. A special situation fund invests in these assets in accordance with its investment objectives and may act as a resolution applicant under the Insolvency and Bankruptcy Code, 2016.
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