A decade after the Insolvency and Bankruptcy Code, India has largely settled one question: can creditors enforce their rights? The answer is yes, says Dinkar Venkatasubramanian, partner, EY, and vice-president, INSOL International. Here’s his thought on the issue:
The more important question now is whether viable businesses can be rescued before their value is destroyed. That is not semantics. It is the difference between an insolvency ecosystem and a turnaround ecosystem.
The first decade of the IBC was about dealing with failure. The next must be about preventing avoidable failure.
India enters this phase from a position of strength. Scheduled commercial banks’ gross non-performing asset ratio fell to a…