Thus, while the principle that a restructuring would call for downgrade of the asset was in place, a window of exception was opened, provided the contours of restructuring met certain conditions. 9. It has been our view that the restructuring schemes were required at a time when we did not have an effective bankruptcy law in place.
The schemes essentially created a framework for resolution that should normally happen under the aegis of an insolvency and bankruptcy law. The focal points of the schemes were deep restructuring of stressed assets, change of ownership / management of stressed borrowers, optimal structuring of credit facilities, and haircuts wherever the exposures were economically unviable. 10.