Rescue financiers call for ministry's protection in insolvency proceedings

The government is examining the demand of last-mile financiers to be given priority in insolvency and bankruptcy proceedings, a senior government official told Business Standard. 

The ministry of corporate affairs (MCA) has representations from fund managers and private lenders providing rescue financing to stressed projects. They want protection if an entity lands into the Insolvency and Bankruptcy Code’s (IBC’s) net even after their assistance.

“We come as a knight in shining armour and then that armour is taken away if a company goes into IBC,” said S Sriniwasan, managing director, Kotak Investment advisors. 

Private investors are sitting on billions of dollars of funds