By Arijit Barman
Last weeks new insolvency Ordinance, barring all wilful defaulters, or incumbent promoters with bad loans for ayear or more, from the auction process to repurchase their asset if they fail to clear all overdues is great polemics. But emotions aside, it may end up bankrupting the banks even more. Auctions have to be thick. Thats Economics 101. Be it telecom or natural resources or Insolvency and Bankruptcy Code (IBC) proceedings. And only let the markets discover the true value of an asset.
There is a reason why Indias largest lender is worried that he may go bald while taking a haircut on his loans. Punishing the desperate promoters, who would have bid aggressively to hold on to the last remains of the family silver, w…
Read the full article at: https://blogs.economictimes.indiatimes.com/et-commentary/insolvency-ordinance-importance-of-being-earnest/
