Cross-border mergers and acquisitions pose a unique opportunity to further globalisation and economic boom, since the same is strategic and benefits both parties involved. However, mergers and acquisitions also present specific issues, for instance, layoffs, negative climate impact, foreign laws and taxes, cultural differences, among other things. Therefore, it’s even more important to understand whether they offer a sustainable model of development. Kinkini Chaudhari explains the meaning of mergers and acquisitions globally and in India using examples. Kinkini also surveys a small sample size to understand how laypeople interpret the scope of cross-border mergers and acquisitions in India, especially after the Covid-19 pandemic.
Corporate Debt Restructuring (CDR) mechanism is a voluntary non statutory mechanism under which financial institutions and banks come together to restructure the debt of companies facing financial difficulties due to internal or external factors, in order to provide timely support to such companies. The intention behind the mechanism is to revive such companies and also safeguard the interests of the lending institutions and other stakeholders. The CDR mechanism is available to companies who enjoy credit facilities from more than one lending institution. The mechanism allows such institutions, to restructure the debt in a speedy and transparent manner for the benefit of al
While it has proved to be fruitful in many cases, still there is a lot of scope for improvement. Various issues arise such as foreign lender’s reluctance to be a part of the CDR process along with Indian banks, because they feel that the process is more favourable to Indian lenders and could be misused by sertain entities. The analysis shows that many restructured cases turn into bad assets over a period of time. A thrust area which needs a further look-in is the post-restructuring phase which demands heavy monitoring.
By Sonakshi Das, School of Law- KIIT University Editor’s Note: This paper discusses the need for a due diligence in M&A. In today’s business world,
By Amrit Subhadarsi, KIIT School of Law, Bhuvaneshwar “EDITOR’S NOTE:- In this era of corporate governance reforms, it has become imperative for the Indian financial
By Meenakshi Menon, NUALS Editor’s Note: Buying back of shares which is often taken as a defense against takeovers has been recently given legal recognition in India.