The Corporate Debt Restructuring CDR system is a three-tiered one in India. The first is the CDR Standing Forum, which includes lender and borrower representatives. It lays down policies for the process. A core group of the standing forum takes policy decisions. The second tier is the Empowered Group, made of top bank executives, which decides on individual cases and ensures policy execution. The third is the CDR Cell. It helps the other two tiers prepare detailed rehabilitation proposals. The first step in the process consists of considering the proposal, brought to the CDR Cell by the leader in the lending consortium or the company. The process takes about 30 days, and all lenders agree to the terms. Next, the CDR Cell scrutinises the proposal, which also can take 30 days. Then there is a review presented to the Empowered Group (90-180 days). The review considers financial parameters such as return on capital and debt service coverage. Once okayed, the case goes into restructuring mode.
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