The Insolvency and Bankruptcy Code, 2016 has been hailed as bringing a new dimension to business funding in India. While it is expected to change funding patterns dramatically, short-term pain can be quite deep.
The resolution process under the Code entails a comprehensive restructuring process for the corporate debtor (i.e. company) such as changes of ownership and management and is largely facilitative to ensure an appropriate environment for an investor to step in and turn around the company for the benefit of all stakeholders.
However, the transactions undertaken as a part of the resolution process could result in taxes, which may unhinge the deal financials, thus making the resolution process less efficient an…
Read the full article at: https://www.vccircle.com/the-insolvency-code-will-tax-be-a-problem/