A bunch of stressed Indian stocks are getting a lot of investor love.
A Bloomberg index of 11 indebted companies that are in bankruptcy court surged 31 percent in December on speculation that the new insolvency law will push the firms founders and lenders to find quick solutions. In comparison, the broader S&P BSE500 gained 3.5 percent.
Once the so-called National Company Law Tribunals, or NCLT, dispatch an indebted firm into insolvency proceedings, a court-appointed resolution professional has at most nine months to chart out a repayment plan, sell assets or revive businesses. If no agreement is reached, the company faces liquidation.
The prospect of a faster resolution is drawing in investors to NCLT stocks, said …
Read the full article at: https://www.bloomberg.com/news/articles/2018-01-02/stressed-stocks-zoom-31-as-new-india-law-sparks-rally-of-hope
