Two years of the Insolvency and Bankruptcy Code: The hits and misses

Experts say that in future insolvency cases, resolution will yield better results

Two years after enactment of the Insolvency and Bankruptcy Code (IBC), it has become clear that creditors, particularly financial ones, cannot focus only on recovery of value for themselves. In these two years, 800 companies have been undergoing the insolvency process.   

At a recent event, Insolvency and Bankruptcy Board of India (IBBI) chief M S Sahoo said creditors need to show more initiative. “The objective of a CoC (committee of creditors) is to generate competitive resolution plans and then approve that which maximises the value for everybody — in contrast to recovery which maximises the value only for one