Mediation In Corporate Insolvency: A Game Changer – BW Businessworld
Insolvency and Bankruptcy Code, 2016 (IBC) has proved to be a successful path for lenders to recover their loans from defaulting companies. According to a Reserve Bank of India (RBI) report, the recovery rate of the IBC is 42 per cent against 10-18 per cent in earlier regimes.
Till December 2018, the IBC has resolved cases involving debt of Rs 3 lakh crore – Rs 1.2 lakh crore at the pre-admission stage, another Rs 1.2 lakh crore through 60 resolved cases and about Rs 60,000 crore NPAs that turned standard accounts. However, coming into effect of the IBC for the banking industry brings with it constant fear of a witch hunt among corporates in India, especially small and medium enterprises (SMEs). Moreover, debt recovery was never the int…
Read the full article at: http://www.businessworld.in/article/Mediation-In-Corporate-Insolvency-A-Game-Changer/14-06-2019-171872