Over 2,500 companies and promoters declared wilful defaulters could benefit from the corporate debt-restructuring mechanism if the recommendations of a high-level committee are accepted.

The committee, headed by J N Godbole, executive director of the Industrial Development Bank of India, has recommended that a company should be declared a wilful defaulter only if 75 per cent of the lenders approve of the proposal.

Under the present dispensation, even if one bank or financial institution reports a case, the Reserve Bank of India declares the borrower a wilful defaulter.

Institutional sources said the panel was of the opinion that the present norms were creating problems for companies and the banking system.

In a number of cases, the RBI has declared a borrower a wilful defaulter on the basis of just one foreign bank's report.

"Foreign banks have marginal exposure to several companies, and their bias creates hurdles for all of us," a bank executive told Business Standard.

Once declared a wilful defaulter by the RBI, the borrower faces restrictions on tapping the capital market and raising loans from other banks and institutions. Moreover, no restructuring is possible.

The committee, with five bank and financial institution executive directors as members, has also recommended that banks and institutions be allowed to restructure the accounts of wilful defaulters as per the corporate debt-restructuring mechanism of the RBI. A loan account is restructured only if 75 per cent of the creditors agree to the proposal.

The corporate debt-restructuring cell has handled debt amounting to over Rs 33,000 crore (Rs 330 billion) in the last 12-15 months.

The panel's report is yet to receive approval from the central bank and the finance ministry.