by Bhuma Shrivastava and Upmanyu Trivedi
India’s new bankruptcy law is getting maximum traction from an unusual set of lenders, those with the least to gain from pushing companies into the insolvency process.
Operational or unsecured creditors, who have dues that are not backed by any collateral, would be la
st
in queue to be repaid once an insolvency plea succeeds in the National Company Law Tribunal, India’s bankruptcy courts. Yet, such parties have triggered 44 percent of corporate insolvencies this year, according to the latest data from the Insolvency and Bankruptcy Board of India. Financial or secured creditors were responsible for 32 percent of successful petitions.
The law was enacted last year to encourage…
Read the full article at: https://economictimes.indiatimes.com/industry/banking/finance/banking/why-last-in-queue-lenders-file-most-insolvency-lawsuits-in-india/articleshow/62206610.cms
