Jolt for errant promoters

Amendments to the insolvency code will send a strong signal

The presidential assent to the Ordinance effecting crucial changes to the Insolvency and Bankruptcy Code is a bold and clever step towards ensuring that the process of resolving bad loans is not gamed by promoters, who have either defaulted wilfully in the past or have not been paying up in time. The government knew it could not legally impose a blanket ban on promoters from participating in the insolvency process, so it did the next best thing by bringing in important caveats that would prevent errant promoters from misusing the insolvency law to regain control of the companies that are