We need a speedy bankruptcy code to resolve distress while maintaining the priority structure of claims. The bankruptcy code will give creditors more ability to resolve distress and help strengthen the corporate bond market, which is so essential to infrastructure financing. Raghuram Rajan, former Governor, Reserve Bank of India, in September 2015.
Fifteen months later, the first case under the newly established system does not inspire confidence.
The developments in the ICICI Bank versus Innoventive Industries case for the recovery of Rs 955 crore under the Insolvency and Bankruptcy Code (IBC) have dashed lenders hopes even before they took the first hesitant step.
The National Company Law Tribunal (NCLT), the adjudicating authority over …
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