Business Standard

Friday, January 24, 2025 | 06:17 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

India's in-court bankruptcies get a dose of common sense and urgency

Amending the bankruptcy code won't revive animal spirits overnight, but it would at least prevent a bad situation from getting indefinitely worse

Stressed assets, Bad loans, IBC, Illustration: Binay Sinha
Premium

Stressed assets, Bad loans, IBC, Illustration: Binay Sinha

Andy Mukherjee | Bloomberg
At last, India's in-court bankruptcies will show some urgency and common sense. 

On Wednesday, the government said it would amend the 2016 insolvency law, a signature reform of Prime Minister Narendra Modi's first term. Investors will cheer.

The legislation was getting mired in frustrating legal delays and bizarre judgments, threatening to scare off global investors from a $200-billion-plus bad-debt cleanup. The last straw was the recent order by the insolvency tribunal judges in the $6 billion sale of Essar Steel India Ltd to ArcelorMittal. The judges ruled that secured creditors would have no seniority over unsecured creditors and suppliers. 

As

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in