IBC a Win­ner for Ail­ing En­ter­prises

FICCI Business Digest - - Policy Monitor -

25 May 2018

FICCI or­ga­nized a con­fer­ence on 'Ef­fec­tive Res­o­lu­tion of Stressed As­sets'. FICCI rec­og­nizes that IBC (In­sol­vency & Bank­ruptcy Code) is a land­mark leg­is­la­tion. It has been a har­bin­ger of pos­i­tive change. IBC has shown con­sid­er­able and pos­i­tive alacrity in terms of con­stant in­ter­ac­tion of the govern­ment with stake­hold­ers to bring about a strong, com­pre­hen­sive and ro­bust piece of leg­is­la­tion, which re­sponds to the dy­nam­ics of the sit­u­a­tion. And, re­duc­ing time­lines can con­tain re­duc­tion in val­ues, says FICCI. IBC seeks to pro­vide a res­o­lu­tion which is ben­e­fi­cial to all the stake­hold­ers, and not just the fi­nan­cial cred­i­tors. The law needs to be lever­aged so that the stake­hold­ers can de­rive max­i­mum value. The aim of IBC is to seek the re­vival of com­pa­nies than their liq­ui­da­tion as the com­pa­nies with right man­age­ment and en­trepreneur­ship skill would be able to make a turn­around for the col­lec­tive ben­e­fit of its stake­hold­ers.

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