Chennai : The latest controversy involving Essel Group chairman Subhash Chandra has brought out the discrepancies in the Insolvency and Bankruptcy Code (IBC). The creditors have to take close to 70 per cent haircut on their claims, proceedings prolong for more than double the prescribed timeline and by then most distressed companies lose their value. Saurabh Bhalerao, director, CareEdge Ratings finds that IBC needs reforms, including increased judicial capacity, reduced litigation-related delays, stronger early-warning and pre-insolvency restructuring mechanisms, as well as improved information quality and transparency. .
More than a decade after IBC’s introduction, how many companies have gone through this resolution process till now?…