Indian companies have yet to fully utilize the Insolvency and Bankruptcy Code (IBC) as a tool to enhance productivity and achieve value maximisation, Ravi Mital, Chairperson of the Insolvency and Bankruptcy Board of India (IBBI), has said.
Addressing a Global Summit on “Accelerated Value Creation for Sustainable Growth”, jointly organised by ASSOCHAM and CPA Australia, on Thursday, Mital pointed out that insolvency proceedings in India are predominantly initiated by creditors rather than the companies themselves.
“It is preferable when companies come themselves (voluntarily initiate insolvency proceedings) as that is when the value destruction is the least”, Mital said.
He cited global insolvency trends, noting that in the…
