Clifford Chance Sees Debt Stress in India as KKR Seeks Deals

Companies in India and Indonesia will probably face greater financial strain in the next two years as weak commodity prices and currency depreciation dent earnings, according to Clifford Chance LLP.

Stressed assets in India’s banking system are at a decade-high as companies including Suzlon Energy Ltd. pursue debt workouts with creditors. Miner PT Bumi Resources and shipper PT Berlian Laju Tanker are among Indonesian corporates in the midst of reorganizing some $4 billion of debt as falling coal prices and vessel oversupply crimp profitability.