ABSTRACT
The Corporate Debt Restructuring (CDR) Scheme was introduced by the Reserve Bank of India (RBI) in 2001 to act as a solution to a company in organizing its outstanding debts. It was meant to act as a tool for corporates to deal with financial difficulties ‘because of factors out of their control and due to internal reasons’. 1 The objective of the CDR framework is to have in place a timely and transparent mechanism for restructuring of the corporate debts of viable entities facing problems, which are outside the purview of the Board for Industrial and Financial Reconstruction, Debt Recovery Tribunal and other legal institutions, the benefit of all concerned. 2 In particular, the aim was to preserve those viable corporate entities that are affected by certain internal and external factors and to minimize the losses to the creditors and other stakeholders through an ‘orderly and coordinated restructuring programme’. 3
