Despite relaxed norms, few MSME promoters able to bid for their own company

The number of firms going for liquidation remains higher than those with a resolution plan

Even after the government relaxed the norms for the micro, small and medium enterprise (MSME) promoters to bid for their own firms under the Insolvency and Bankruptcy Code (IBC), only a few have been able to bid successfully for their companies. 

A number of companies, closed for three to nine years, are under liquidation process at the National Company Law Tribunal (NCLT). With the assets almost turning into scrap, bankers are getting 15-25 per cent of the principal value, which they say is better than what resolution plans of the existing promoters offer. 

Even for the firms that defaulted on