Special situation funds may invest in defined distressed assets and act as insolvency resolution applicants under their investment objectives. Special situation assets include eligible stressed loans, security receipts issued by registered Asset Reconstruction Companies, and securities of ... Summary
Special situation funds may invest in defined distressed assets and act as insolvency resolution applicants under their investment objectives.
Special situation assets include eligible stressed loans, security receipts issued by registered Asset Reconstruction Companies, and securities of investee companies with eligible stressed loans, security-receipt-backed borrowings, corporate insolvency proceedings, or continuing disclosed payment defaults. For companies under corporate insolvency resolution or with continuing defaults, relevant instruments or borrowings must be rated D or equivalent. A special situation fund invests in these assets under its investment objectives and may act as a resolution applicant under the Insolvency and Bankruptcy Code, 2016.
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