Asset reconstruction is an acquisition by an Asset Reconstruction Company (ARC) of right or interests of any Bank or financial Institution for the purpose of realization of such financial assistance.
We will compile a short note about your company, financials from the past 3 years, projections and marketing advance.
We will analyze and provide you suggestions on what can be done next. We will have a brief discussion with you on the same to proceed.
The ARC can take over only secured debts that has been classified as non-performing assets (NPA). In case debentures/bonds remain unpaid, the beneficiary of the securities is required to give a notice of 90 days before it qualifies to be taken over.
FACTS ON ASSET RESTUCTURE FUNDING
An asset reconstruction company is a special type of financial institution that buys the debtors of the bank at a mutually agreed value and attempts to recover the debts or associated securities by itself.
The ARCs take over a portion of the debts of the bank that qualify to be recognized as Non-Performing Assets. Asset reconstruction companies are in the business of buying bad loans from banks. For instance, if a bank lends money to a person or company, they expect to receive periodic payments of principal and interest. If they can recover the money, they make a profit, if not they lose the money.