Amendments to the Insolvency and Bankruptcy Code (IBC) are likely to make lenders take large haircuts as suitors drive a hard bargain to buy cheaper assets and delay the resolution process for stressed loans. The revised IBC will keep errant promoters of defaulting firms out of the bidding process for assets under the National Company Law Tribunal (NCLT). Domestic Brokerage Edelweiss said IBC amendments stack the odds heavily against defaulting promoters.
It will be negative for banks given the probability of higher haircuts (on cases referred to the NCLT) and ...
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First Published: Sat, November 25 2017. 00:55 IST
