Some six months ago, Hyderabad-based Ind-Barath Energy walked out of the Insolvency and Bankruptcy Code (IBC) proceedings with a new buyer, JSW Energy, after nearly four years. Under the IBCs timelines, the process should have taken six months, or a maximum of a year if one factors in litigation. The outcome was equally disappointing, with banks recovering just Rs 1,047 crore of the Rs 5,500 crore of dues the thermal power producer had. Ind-Barath isnt an exception. More than half the default cases at the IBC have been languishing for more than nine months without any resolution. Besides, the financial creditorsmostly banksare usually able to recover only a small percentage of the admitted claims. For instance, in the case of Videocon In…
Read the full article at: https://www.businesstoday.in/magazine/deep-dive/story/indias-insolvency-and-bankruptcy-code-is-not-working-heres-whats-going-on-391458-2023-07-27