Foreign creditors will have to wait to stake claims in insolvent companies

Cross-border insolvency will help creditors from other countries that have a stake in Indian cos

Creditors across the border will have to wait to be part of the insolvency process in India.While the sections pertaining to cross-border insolvency in the Insolvency and Bankruptcy Code have been notified, the rules are yet to be framed. 

M S Sahoo, chairman of the Insolvency and Bankruptcy Board of India (IBBI), says that the rules are in the making. Sahoo told Business Standard: “We are working on the rules for cross-border insolvency. We need to lay down what kind of agreements India should get into with other countries. It has to be decided what clauses should be part of those