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CS Professional · Corporate Restructuring, Valuation and Insolvency · Resolution Strategies

In the CIRP of Kaveri Pharma Ltd, the resolution applicant offers to extend the maturity of a term loan by three years and to reduce the interest rate on it. Which clause of Regulation 37 of the CIRP Regulations does this proposal most directly fit?

The proposal fits the measure of extending a maturity date or changing the interest rate or other terms of a debt due from the corporate debtor, which Regulation 37 lists as a permitted resolution plan measure. It deals with loan terms, not shares, technology or constitutional documents.

  1. AExtension of a maturity date or a change in interest rate or other terms of a debt due from the corporate debtorCorrect
  2. BCancellation or delisting of shares of the corporate debtor
  3. CChange in technology used by the corporate debtor
  4. DAmendment of the constitutional documents of the corporate debtor

Explanation

Regulation 37 provides for extension of a maturity date or a change in interest rate or other terms of a debt due from the corporate debtor. The proposal changes both maturity and interest rate of a debt. The other options concern shares, technology and constitutional documents, which are not touched by the proposal.

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