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Debt Restructuring · Question
Short answer
Yes, it is possible. A pending request does not automatically suspend the lender's rights under the loan agreement, unless there is a written standstill. In practice many lenders keep talking with borrowers who engage honestly and keep servicing what they can. This is general information, not legal advice, and every decision rests with the lender and the facts of your account.
A loan agreement gives the lender rights if conditions are breached, including the right to call the loan due in specified situations. Asking for restructuring does not cancel those rights. What matters is how the lender chooses to use them, and that depends on its policy, the account's status and your conduct.
Things that tend to push a lender towards action:
Things that tend to keep talks open are prompt, honest disclosure with a complete request pack, regular part payments that show intent, cooperation with inspections, stock audits and information requests, and a realistic plan with evidence behind it.
A notice is not the end of talks
If you receive a formal notice, do not ignore it. Read it fully, note the deadline for a reply, and respond in writing through your advisor or lawyer. Talks can often continue in parallel, but silence rarely helps.
Ask whether the lender will record that no recall action is intended while the proposal is examined. Some lenders will confirm a short standstill, others will not. If it is not written, do not rely on it.
Meanwhile, protect the secured assets, avoid unauthorised sales, and keep stock and receivable records current.
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This answer is general information, not advice on your particular case. Terms, eligibility, and requirements change, so check the current position with the relevant institution or authority. Lalsar Holdings' financial advisory and financing work is advisory and facilitation only. Lalsar Holdings is not a lender. Sanction and disbursement of any credit facility is at the sole discretion of the partner bank, NBFC, or financial institution involved, subject to their own eligibility criteria and credit policy.