Lead Story

Bad debt or death bed?

Evergreening of loans is keeping several over-leveraged companies alive. What could be the endgame?

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Published 6 years ago on Dec 14, 2015 22 minutes Read

Just a year before liberalisation, a few enterprising men decided to enter the business of steel making. These men borrowed monies from banks and then kept on borrowing. One fine day, the bankers realised that the promoters had no way of making good on their debt obligations. But accepting financial loss — or losing face, for that matter — was not an option for these banks.