Jayaswal Neco case to help bankrupt cos, lenders to resolve debt faster

Lenders may sign out-of-court settlements with other bankrupt companies, ARCs

The recent debt resolution of Jayaswal Neco Industries, one of the first companies sent to bankruptcy courts, has opened a fresh avenue for bankrupt companies to get control of their companies – provided 90 per cent of its lenders agree to sell their loans to the asset reconstruction companies.

Jayaswal Neco, a Nagpur based steel castings firm, won a reprieve with the Asset Care & Reconstruction Enterprise (ACRE) buying the company's debt from the lenders and its lenders agreeing to withdraw the bankruptcy proceedings.

The company was sent to the bankruptcy court in 2018 after it defaulted to its debt worth