Restructuring: A Real Lifeline or a Hobson's Choice? -A Case from the Textile Sector.

The RBI came out with a special restructuring package in August 2020 to address the stress induced due to the Covid-19 pandemic. Met with inhibitions of implementation, it was utilized by lenders while cautiously evaluating the genuineness and periodicity of stress. The era preceding the pandemic was of the 'Twin Balance Sheet' problem - overleveraged companies on one hand and bad-loan-encumbered banks on the other. Covid-19 extended the winter. Scepticism regarding the contours of a new restructuring package compounded with the uncertainty of pandemic came naturally. The macro view along with the future outlook of the industry coupled with an analysis of other alternatives and a bankable resolution plan helped in decision making which provided the most crucial element -'time', which helped maintain the business continuity and preserved the value of assets. We have tried to analyse the same with the help of an example where 15 months later, the business was sold to a financially strong entity culminating in a win-win for the seller, purchaser, lenders and employees of the company thus benefitting all the stakeholders. [ABSTRACT FROM AUTHOR]