By SN Ananthasubramanian and Eshwar Sabapathy
The Insolvency and Bankruptcy Code, 2016, intended to provide for an enactment to consolidate and amend the law relating to re-organisation and insolvency resolution, has given rise to a new breed the insolvency professional, who holds the key to insolvency resolution.
The World Banks Doing Business Report states that the resolution time for corporate insolvency in India is 4.3 years, at a cost of about 9% of the estate, resulting in the recovery of 25.7 cents to every dollar due to a creditor in a corporate insolvency. It is in this backdrop that the code and the profession it will spawn assume significance.
The insolvency professional will step in during the 180-day calm period in an in…
Read the full article at: http://blogs.economictimes.indiatimes.com/et-commentary/bankruptcy-code-will-give-rise-to-a-new-breed-of-professionals/