Two years after the much-touted Insolvency and Bankruptcy Code 2016 (IBC) was implemented, slow progress of cases is becoming a cause for concern. High profile, large accounts such as that of Essar Steel, which has been undergoing resolution for over 600 days, bring to the fore the grave issue of excessive delays in the process.
Many banks had factored in substantial recoveries from accounts filed for insolvency under IBC in the March 2019 quarter. Resolution of many of these cases have now been pushed into fiscal 2020.
What is leading to the undue delays in the IBC process? Can the Code, having evolved over the past two years, start delivering time-bound resolution, as expected at the outset?
We break down the IBC conundrum into several p…
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