MUMBAI: Size and corporate governance do matter: That seems to be the unambiguous message Indias bankruptcy courts are giving the countrys beleaguered lenders about a year since they began the process of recovering bad loans within specific deadlines.
Since December 2016, when the new law came into force, 11% (67 cases) of the small and medium companies have already been liquidated, show data compiled by New Delhi-based Corporate Professionals. Just about 2% of the 625 companies taken to the dedicated courts have seen successful revival plans.
Small and mid-sized companies have been liquidated mostly as they could not find interested buyers, with promoters often blamed for siphoning off the banks money,” said Manoj Kumar, partner, Co…
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