The Insolvency and Bankruptcy Code, 2016 envisaged standard, plain vanilla processes to start with, but anticipated sophisticated options as the ecosystem matured. With considerable learning and maturity of the ecosystem, and a reasonably fair debtor-creditor relationship in place, the stage is set to push the envelope a bit further.
The IBC-envisaged corporate insolvency resolution process (CIRP) critically depends on the availability of resolution applicants (RAs). When most companies, industries and economies are reeling under stress on account of the Covid pandemic, the likelihood of finding an RA to rescue a failing company is low.
This may remain a concern for some time as there is no clarity as to when Covid-19 will subside fully…
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