Business Standard

Tuesday, December 24, 2024 | 01:25 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

Haircuts and settlements

Gaming the system leads to losses to lenders

Illustration: Ajay Mohanty
Premium

Illustration: Ajay Mohanty

Business Standard Editorial Comment New Delhi
India’s bankruptcy process under the Insolvency and Bankruptcy Code (IBC) is relatively new, and should be seen as a work in progress. Concerns that have recently been raised about the size of the haircuts that lenders have had to take should be seen in that light. Overall, haircuts have been in the 80 per cent range — in other words, banks have lost four-fifths of the money they have lent companies that have entered the IBC process. Even the National Company Law Tribunal recently expressed surprise that Vedanta’s Anil Agarwal was “paying almost nothing” to take over Videocon Industries. But

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in