Insolvency and Bankruptcy Code: Firms cope with changing landscape

Financial creditors till July had realised claims of approximately Rs 474 billion in 26 cases where resolution plans were submitted under the Insolvency and Bankruptcy Code (IBC) since its enactment. But the figure pales in comparison with the behavioural change that the Code has brought about. 

The borrowing and lending culture in the country appears to have changed for good. Borrowers are scrambling to settle their loans, selling assets to bring down debt, all with the sole aim of staying outside the ambit of the National Company Law Tribunal (NCLT).

"In the current environment, debt is a stigma," the chief financial officer