Defaulters seek generous bailouts like Siva-IDBI Bank one-time settlement

That deal, approved by 90% of Siva Industries lenders, was signed as there were no other suitable offers; lawyers say it will set a bad precedent

Taking a cue from C Sivasankaran-owned Siva Industries, which is getting a generous bailout from Indian lenders led by IDBI Bank to get out of insolvency courts, other Indian promoters are also planning to make such applications, say lawyers. The one-time settlement, approved by 90 per cent of Siva Industries lenders, was signed this April as there were no other suitable offers on the table, say lenders.

But lawyers said this kind of a settlement will set a bad precedent for the insolvency and bankruptcy code, with most defaulters seeking a similar bailout at the cost of Indian banks. "The