In a critical twist to the use of the Insolvency and Bankruptcy Code (IBC), concerns are being raised on promoters trying to escape loan repayments by claiming bankruptcy and going to the insolvency courts.
Educomp Solutions (ESL), which was once a promising player in the private education space, defaulted on loans. With lenders staring at losses of over 87 percent of their total Rs 3,000 crore exposure, Educomp filed for bankruptcy, according to The Wire report.
Moneycontrol could not independently verify the authenticity of the report, and multiple calls to Shantanu Prakash, Promoter and Chairman of Educomp, elicited no response.
Educomp went to the National Company Law Tribunal (NCLT) for insolvency in May 2017. As p…
Read the full article at: https://www.moneycontrol.com/news/business/companies/educomp-may-have-subverted-the-spirit-of-insolvency-and-bankruptcy-code-report-2542483.html
