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Will ARC acquire debt with second charge on fixed assets/first charge on working capital or vice versa? Will debenture holders also be able to transfer their holdings to ARC?

April 26, 2017acquire ARC charge debenture debt fixed assets versa working capital

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Will ARC acquire debt with second charge on fixed assets/first charge on working capital or vice versa? Will debenture holders also be able to transfer their holdings to ARC?

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A. ARCs are empowered to acquire all secured debt (whether carrying first charge and / or second charge on fixed assets and / or current assets). If banks / FIs hold secured debt in the form of debentures then they will be able to transfer their holdings to ARCs.