MUMBAI: In late June, one of India’s top wind power equipment makers, Inox Wind Ltd, was dragged into insolvency courts by a logistics handler over unpaid dues of $88,000. Two weeks on, the matter was settled, with dues paid off.
The case illustrates how small creditors and vendors, previously at the mercy of large debtors, are now using India’s new bankruptcy code as a pressure ploy to secure payment of dues that would earlier have been all but impossible to recover.
India overhauled bankruptcy laws last year with the main goal of helping banks tackle a $150-billion bad loan issue that is crimping growth in the economy.
Less than a year on, insolvency professionals say it is vendors and small suppliers, also referred to as operat…
Read the full article at: http://economictimes.indiatimes.com/news/economy/policy/small-creditors-use-indias-new-bankruptcy-rules-to-put-the-squeeze-on-big-players/articleshow/60701425.cms