Bankers are worried that the corporate insolvency resolution process (CIRP) could turn chaotic and face delays as the Insolvency and Bankruptcy Board of India (IBBI) may amend the rules, giving operational creditors (OCs) a larger say in the resolution process.
Their fear stems from the observations of a two-judge Supreme Court Bench last month that OCs should have voting rights in proportion to their exposure, just like the committee of creditors (CoC), in the CIRP. Bankers say the IBBI may amend the Insolvency and Bankruptcy Code (IBC) rules in the wake of these observations.
An OC is a person/enterprise to whom an operational debt (a claim in respect of provision of goods and services) is owed by a corporate debtor and includes any pe…
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