A year after India’s central bank tightened the screws on companies delaying debt payments, the nation’s Supreme Court is poised to begin hearing arguments on whether the regulator’s diktat applies across industries.
Hanging in the balance is the fate of more than $25 billion of loans to power producers. They are among parties contesting the central bank directive that forced lenders recognize loans as soured if dues are delayed even by a day and to approach bankruptcy courts if a restructuring isn’t agreed to within 180 days. The top court in September halted proceedings against power, sugar and shipping companies after they challenged the Reserve Bank of India’s rules.
