If one takes a conventional measure where debt to EBIDTA ratio of more than 4 times represents a stressed company, total loan assets of such firms in India are closer to Rs 30,000 crore, which is 30% of all advances. Nikhil Shah, managing director, India, Alvarez & Marsal, a specialist firm in resolution, discusses with ET journalists the future of banking in relation to bankruptcy. Edited excerpts:
MC Govardhana Rangan: Can the new bankruptcy system change life materially?
There are a few key things in the law that should yield a better outcome than we have had earlier. The law applies to all stakeholders and acts as a forcing mechanism. Once the process is triggered, there is a moratorium for all obligations. All stakeholders come …
Read the full article at: http://economictimes.indiatimes.com/opinion/interviews/the-ib-law-applies-to-all-stakeholders-nikhil-shah-md-india-alvarez-marsal/articleshow/59978215.cms