The edifice of the Insolvency and Bankruptcy Code, 2016 (“IBC”) was conceptualised on ideas such as promoting ‘maximisation of value of assets’, ‘a transparent and predictable insolvency law’, ‘avoiding destruction of value of the debtor’ and recognising the difference between ‘malfeasance and business failure’. In the three years since the enactment of the IBC, many areas in the insolvency resolution process have required judicial and legislative interventions to enable the process to achieve the desired results.
Among others, the ongoing investigations against insolvent entities and the risk of cancellation of critical government contracts during the insolvency process, were identified as key impediments to strategic interest in the stressed market. The introduction of the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019 (“Bill”), by the Government, is a step that will help overcome such ‘critical gaps in the corporate insolvency framework’.
Continue Reading IBC Second Amendment Bill, 2019: Finishing Touches to the Indian Restructuring Landscape