As big names in the corporate world keep tumbling down due to the pressure of not being able to service their debts. Let’s look into a few cases with reasons behind their fall.
- Jet Airways facing collapse which will become a possibility as they face issues with operations,
- Indigo showing early signs of getting weak.
- Zee group going down due to exposure to the infra sector along with mistakes in new acquisitions. Though promoters are given time to bring a plan, it is kind of a case similar to Satyam collapse.
- DHFL staring to become India’s biggest financial scam with 31k Crores of default, all because of promoters moving out money to amaze personal wealth.
- ILFS struck with 6 entities that are doing well which are targeted by all the lenders to recover their dues. Mutual funds become the big losers here.
- Yes Bank promoter loan exposure where Mutual Funds became cautious and averted a loss.
- RCom getting to insolvency protection.
An interesting fact is that all of these failures are tracing their origins to infrastructure exposure, which brings to light some serious issues with the sector, probably it is due to the Government policy decisions, where the greed of promoters is helping them lose everything they own. As Financial markets become more attractive, there is an urgent need for quality managers to make the best returns on capital.