We seem to have lost sight of the laudable objective of reviving an entity. Photo: iStockphoto
The Insolvency and Bankruptcy Code (IBC) of 2016 was meant to signal a break from the past. While there were larger macroeconomic objectives at play, such as solving the twin balance-sheet problem, developing a robust corporate bond market, improving the credit environment and, consequently, providing a fillip to Indias competitiveness as a business destination, the new code was designed to introduce a streamlined, two-step corporate insolvency process which, among other things, prevented value destruction in corporate distress.
The Banking Law Reforms Committee (BLRC) consciously conceived two phases in the resolution process. Phase I being a c…
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