The insolvency regulator has called for public comments on a proposal to introduce a code of conduct for Committees of Creditors (CoC), of companies undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). We examine the need for a code of conduct for the CoC and key issues raised in the proposed policy.
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Why is a code of conduct necessary for CoCs?
Under the IBC, a CoC composed of financial creditors to the Corporate Debtor (CD) or operational creditors in the absence of unrelated financial creditors is empowered to take key decisions, including decisions on haircuts for creditors, that are binding on all stakeholders, including those dissenting.
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Read the full article at: https://indianexpress.com/article/explained/new-code-creditors-ibc-bhushan-steel-sterling-biotech-cases-7491860/
