 "IBC, NPAs, insolvency, bankruptcy, companies")
Haircuts in debt recovery, say experts, are due to three reasons: Delay in admitting insolvency applications, poor market sentiment, and the inappropriate timing of cases landing for resolution in bankruptcy court.
Several cases such as those of Videocon and Amtek Auto have seen erosion in value during the long-drawn process of resolving non-performing assets (NPAs). A senior official said while faster resolution mechanisms needed to be in place, the creditors are in the driver’s seat.
“The decisions the committee of creditors takes in their commercial wisdom have to be in keeping with the spirit of the Insolvency and Bankruptcy Code
