"The other segment is some assets, for example in the IL&FS case, which were categorised as 'red' based on the solvency rate and cash flows. Such difficult assets can be acquired by ARCs (asset reconstruction companies) at a discount which means debt levels will come down and servicing capacity with the same cash flow may go up. ARCs can give a longer time frame for repayment which will improve the ability of the existing cash flow to service the debt at that particular time," Mohapatra said.