Insolvency pangs: More transparency and tweaking of the IBC will help

Of the 12 indebted companies that were referred to the NCLT, for resolution under IBC, two - Bhushan Steel and Amtek Auto - have found buyers in Tata Steel and Liberty House, respectively

The Insolvency and Bankruptcy Code, or IBC, has made some smart progress towards reconciling India’s humongous bad debt problem. Of the 12 indebted companies that were referred to the National Company Law Tribunal, or NCLT, for resolution under the IBC, two — Bhushan Steel and Amtek Auto — have found buyers in Tata Steel and Liberty House, respectively. Another six companies are awaiting bidder selection, which is expected by early next month. Given India’s traditionally labyrinthine processes, this is decent progress in the space of five months from the initial NCLT reference. It is axiomatic that this momentum, in turn,