Indian, foreign creditors to be equal under new insolvency provisions

Foreign and Indian creditors will get a fair portion of the assets of a firm going for insolvency

With the government recently notifying the cross-border insolvency provisions under the insolvency and bankruptcy law, claims of foreign creditors, as well as those of Indian creditors on foreign assets of the company going insolvent, could be satisfied by courts.

However, experts believe that notifying the rules is not enough and New Delhi will have to sign agreements with governments of other countries in this regard.

Before this, creditors, particularly foreign ones, had been raising this issue. In line with the model cross-border insolvency law approved by the United Nations General Assembly in 1997, India’s code allows unhindered access to foreign