Insolvency process may boost producer margins, raise capital flow: EY Study

The IBC process has so far seen successful resolution of Bhushan Steel, taken over by Tata Steel and Electrosteel Steels which Vedanta bought over

The insolvency resolution process currently on in the steel sector will see the exit of some owner management and consolidation in the industry, according to a new report. While the committee of creditors (CoC) seeks to maximize value through higher upfront cash commitments and infusion, current incumbents having financial resources and credibility will be able to consolidate their position in the industry.
 
In a report on the Indian metal and mining industry, EY and the Indian Chamber of Industry said the advantage of size and scale, the source-to-market networks and supplier-customer relationships will be redrawn, boosting producer margins. “We