Flexibility on bankruptcy

Govt deserves credit for insolvency code changes

Parliament on Tuesday gave its assent to the amendments that the government had proposed to the Insolvency and Bankruptcy Code, or IBC. These are meant to address some hurdles afflicting the implementation of bankruptcy proceedings. The new flexibility introduced by the changes is an important indication that the government is serious about getting distressed assets up and running or, failing that, freeing up capital for other uses. The problem is that the government has to deal with multiple objectives and constraints, making the exercise a tightrope walk.

It needs to, first of all, try to maximise the probability that these