FIs okay BPL''s debt revamp

Mumbai: Indian financial institutions and banks led by ICICI Bank have cleared the corporate debt restructuring (CDR) proposal of Bangalore-based electronics firm, BPL Ltd.

Altogether 20 banks and insurance companies with an exposure of Rs987 crore participated in the CDR proposal. Other 16 banks — who have exposure of Rs481 crore — remained outside the CDR proposal.

FI sources said top BPL management clarified on all the issues on Friday, which had held up the loan restructuring proposal of the company. Of the banks that participated in the CDR process, LIC, Bank of Rajasthan and Bank of India, UTI Bank and Indusind Bank have initiated legal action against BPL for defaulting on their loans.

One of the main conditions during the CDR proposal submitted by BPL was to drop the legal action against the company.