By Sridhar Ramachandran
The buzzword now is the bankruptcy law. It is seen as a panacea for the problem of nonperforming loans, but it is a lot more than that provided the execution matches the intent. That workers claim is above the dues to state and any dubious transaction two years prior to bankruptcy with related parties and one year in case of other contracts can be scrapped should offer protection to debtors. Once a corporate debtor defaults, a corporate insolvency resolution process (CIRP) can be initiated through the National Company Law Tribunal (NCLT). The CIRP should be completed within 180 days from the date of admission and can be extended by a maximum of 90 days.
This way all stakeholders come to an agreement to restructu…
Read the full article at: http://blogs.economictimes.indiatimes.com/et-commentary/execution-will-be-key-to-bankruptcy-laws-success/