M&As to pick up once moratorium ends, loan recast takes off, say bankers

Several airlines, hotels, travel firms are likely to move their applications for one-time restructuring once moratorium ends. These companies will look at selling assets of stakes

With the moratorium announced by the Reserve Bank of India ending on August 31, and the cash flows across a vast majority of companies expected to take more time to recover, a large number of Indian companies are planning to take advantage of the RBI’s one-time debt restructuring plan. Some will sell assets to repay loans and mergers and acquisitions will pick up substantially among the Indian companies, say bankers. Total M&A transactions announced till July-end by India Inc was down to only $56.73 billion (thanks mainly to Jio deals) as compared to $88.8 announced last year.

Several airlines, hotels,