New-look inter-creditor agreement on the cards as IBC process suspended

The stage has been set for a major relook at banks’ inter-creditor agreements (ICAs), following suspension of fresh cases under the Insolvency and Bankruptcy Code (IBC). The Indian Banks’ Association can be expected to begin formal discussions with the wider banking fraternity over the next fortnight.

“The three-month moratorium, and the fact that a one-time restructuring may be needed, has triggered this relook,” said a senior banker. 

Under the current arrangement when banks fail to hammer out a resolution, the matter is referred to the National Company Law Tribunal (NCLT). With this option off the table for the year ahead,