New bankruptcy law: Employees can seek attachment of promoters’ assets – The Indian Express

Photo for representational purpose

Lenders, shareholders and even employees can seek attachment of all immovable assets, including those abroad, given as guarantee for loans by the promoters of a company going belly up to recover their dues under the new bankruptcy law.

The Insolvency and Bankruptcy Code approved by Parliament earlier this month empowers employees, creditors and shareholders to initiate resolution process at the first sign of financial stress like a default on repayment of a bank loan, Economic Affairs Secretary Shaktikanta Das told PTI.

If the issue persists even after the extended nine-month resolu…

Read the full article at: http://indianexpress.com/article/business/banking-and-finance/new-bankruptcy-law-employees-can-seek-attachment-of-promoters-assets/