India has paved the way to replace its archaic insolvency laws with a new bankruptcy code that would help the countrys banks as they struggle under billions of dollars of bad loans. The law could be confirmed as soon as this week.
On Thursday, the Lok Sabha, Indias lower house of parliament, passed the Insolvency and Banking Code, which will reduce the time it takes to wind up a company and speed up the process of recovering debts from firm that default.
Under the existing century-old laws, banks have had a hard time recovering bad debt, with the case of Kingfisher tycoon Vijay Mallya, who owes banks more than US$1.3 billion, bringing the issue into sharp focus.
The bankruptcy bill still needs to be approved by the upper house of parliame…
Read the full article at: http://www.thenational.ae/business/economy/indias-bankruptcy-code-to-pave-way-for-insolvent-companies-with-smoother-exit