WHAT’S HAMPERING THE BANK­RUPTCY CODE

Need faster plug­ging in to re­store con­fi­dence in the code

Business Today - - COVER STORY -

Ab­sence of strate­gic play­ers

Gen­eral slow­down in the econ­omy and over­lever­aged cor­po­rates, gov­ern­ment should step in to cre­ate a bet­ter pol­icy en­vi­ron­ment

Lack of global in­ter­est

No con­fi­dence yet in time-bound res­o­lu­tion, the 180 and 270 days dead­line should be fol­lowed strictly

Le­gal chal­lenges

Bid­ders and de­fault­ing pro­mot­ers are chal­leng­ing the sale and or­ders, should set precedents fast for smooth func­tion­ing

Forced ap­proach

RBI push­ing banks to take com­pa­nies to bank­ruptcy, should be left to banks

Un­pre­pared bankers

No co­or­di­na­tion amongst bankers or plans for turn­around or ready buy­ers, need an I-bank­ing kind of ap­proach

Clogged IBC in­fra­struc­ture

In two years, NCLTs flooded with cases, need more NCLTs and NCLATs

Too many amend­ments

The Act was amended twice to in­clude home­buy­ers as fi­nan­cial cred­i­tors and de­bar­ring pro­mot­ers with one-year de­fault; amend­ments should be well thought out

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