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Banks to take 55% haircut on Coastal Energen’s debt of Rs 6,500 crore

Banks to take 55% haircut on Coastal Energen’s debt of Rs 6,500 crore

Finance
Mumbai: Banks have agreed for a one-time settlement for Tamil Nadu-based Coastal Energen, which owes creditors Rs 6,500 crore. Lenders have agreed to sell the company’s debt at a 55% haircut to a consortium comprising Hong Kong’s alternative investment fund SSG Capital and the distressed debt unit of Deutsche Bank, two people involved in the negotiations said. A 55% haircut works out to an upfront cash payment of Rs 2,925 crore, which the lenders will receive in lieu of their debt. They have also been offered a 15% equity in the firm, which could give them an upside in the future, said one of the persons quoted above. “The equity value is approximately Rs 200 crore, which we will get through issuance of fresh shares to banks. We expect this resolution plan to be completed either by the end
‘You should consider SIP in debt mutual funds,’ says Swarup Mohanty, CEO, Mirae Asset

‘You should consider SIP in debt mutual funds,’ says Swarup Mohanty, CEO, Mirae Asset

Finance
An SIP or Systematic Investment Plan is typically used to invest regularly in equity mutual funds. Does it make sense to invest through SIP in debt mutual fund schemes. Many investment experts do not think it is a smart idea, but Swarup Mohanty, CEO, Mirae Asset Global Investments (India), beg to differ. “If you have been comfortable doing RD in banks, there is no reason why you can’t take forward the same investment behaviour in mutual funds,” Mohanty told the participants at ET Wealth Investment Workshop, held in Noida last week. “Think about an SIP in debt. If you look at SIP in debt, they would have also given you very good returns. SIP in debt is a very decent investment vehicle. The only problem is that we do not talk much about it,” said Mohanty. Most mutual fund participants do not
Student debt is a ‘top tier’ issue in 2020 presidential campaign. What the candidates are proposing

Student debt is a ‘top tier’ issue in 2020 presidential campaign. What the candidates are proposing

Finance
Democratic presidential hopefuls in partnership with Univision at Texas Southern University in Houston, Texas on September 12, 2019.Frederic J. Brown | AFP | Getty ImagesStudent loan borrowers have reason to pay close attention to the 2020 presidential campaign.Many of the Democratic presidential candidates have detailed plans to address what increasingly is called a student loan crisis.Education debt in the U.S. has eclipsed credit card and auto debt. Today the average college graduate leaves school $ 30,000 in the red, up from $ 10,000 in the 1990s, and nearly 1 in 3 student loan borrowers are in delinquency or default. Research has shown that the debt makes it harder for people to buy houses and cars, start businesses and families, save or invest.More than half of Americans say student ...
India has limited room to ease fiscal policy due to high debt: Fitch

India has limited room to ease fiscal policy due to high debt: Fitch

Finance
Fitch Ratings on Tuesday forecasted India's economic growth at 6.6 per cent during the current year, down from 6.8 per cent in the previous year, and said the government has only limited room to ease fiscal policy because of high debt. It said GDP (gross domestic product) growth is likely to rebound to 7.1 per cent next year. Keeping India's rating unchanged at BBB- with a stable outlook, it said the rating balances a strong medium-term growth outlook and relative external resilience with sturdy foreign reserve buffers, against high public debt, financial sector fragilities and some lagging structural factors. In its Asia-Pacific Sovereign Credit Overview, Fitch said India's GDP growth decreased for a fifth consecutive quarter in the April-June quarter to 5 per cent, the lowest in six year...
Defrauded students are still waiting for debt forgiveness from Betsy DeVos

Defrauded students are still waiting for debt forgiveness from Betsy DeVos

Finance
File photo of an ITT Technical Institute campus in Anaheim, California.Susan Goldman | Bloomberg | Getty ImagesWhen Morgan Marler's 5-year-old daughter, Lilian, asks her why she doesn't work anymore, Marler doesn't know what to say. "I can't explain debt to her," Marler, 29, said. "And how I went to school and it was all for nothing."Marler attended ITT Technical Institute, a now-shuttered for-profit school, between 2013 and 2016. The school has since been found to have misled students with false advertisements. Marler, for her part, was told students typically went on to make $ 70,000 a year. After she graduated, the best jobs she could find were at call centers that paid $ 10 an hour — less than she'd been making before she enrolled at the school.Her associates degree at ITT left her wit