With the implementation of the insolvency law, the days of feudalism of corporate debtors where they had considered it their divine right to be in control are gone, Chief Economic Adviser K V Subramanian said on Friday.
The Insolvency and Bankruptcy Code (IBC), which came into force in 2016, provides for a market-linked and time-bound resolution of stressed assets. Once a stressed company is admitted for resolution under the IBC, the Committee of Creditors (CoC) will be in charge and the company’s affairs are managed by a resolution professional. If the resolution is not successful, then the company goes into liquidation.
“Before IBC, there used to be feudalism where the corporate debtor took it to be his or her divine right to be in cont…
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