Debt Restructuring of Distressed Indian Construction Projects (original) (raw)

A huge number of projects have undergone distress due to the slowdown in Indian economy. As a result the Indian banking system has been increased in NPA (Non-performing Assets) and restructured real estate projects during the recent years. With degradation in value the distressed assets don’t produce any profit in economy. Financial distress is a trending topic these days in finance and the project’s health is very important for investors as well as management. Investors deposit money in those projects which are financially healthy as risk of default is minimized for them, while management must be able to identify causes of distress which can be controlled by taking different measures. This paper deals with the elements of project financial distress as its major signs and sources as well as it suggests ways to eliminate the consequences. This result provides an effective way to resolve financial distress by restructuring it. Restructuring a project is always a better option in compa...