Bidders for stressed assets want fair treatment for all creditors

The code says the process is intended to balance the interests of all stakeholders and the resolution plan is also required to make a statement as to how it has dealt with these interests

Bidders for stressed assets have warned that the current interpretation of the Insolvency and Bankruptcy Code — according priority to the interest of lenders while ignoring non-financial creditors — could lead to legal challenges. As of now, lenders are sending defaulters to the National Company Law Tribunal (NCLT) for debt resolution, but, in the process, are blocking the receivables of suppliers, which are an important cog in a company’s production cycle. Some companies have defaulted to their suppliers in the order of billions of rupees and are sitting on huge losses.
 
“Neither do non-financial creditors have any say in