Debt resolution process: Bankers fret over spike in consultants' bills

Bankers say RPs are outsourcing human resources and audit/legal consulting to outside firms so as to plug all loopholes. Bankrupt companies also pay for special forensic audits and legal opinions

The rising cost of debt resolution of several bankrupt companies is worrying bankers, as a substantial part of the income of such companies is going towards compensating resolution professionals and other consultants hired to complete the process.

Bankers said debt resolution bills are rising as resolution professionals are outsourcing the human resources and audit/legal consulting to outside firms so as to plug all the loopholes. Bankrupt companies also pay for special forensic audits and legal opinions, which are conducted when banks feel that funds have been diverted by the previous promoters. As a result, it is the creditors and former