Insolvency procedure benefits creditors, but concerns remain, say lenders

Creditors say they realise that the insolvency process it is not just recovery legislation for lenders, but an effective resolution mechanism for corporate debtors

Even as the implementation of the Insolvency & Bankruptcy Code has changed not only the economic scenario but also the outlook of both creditors and the debtors, there are certain concerns that have to be addressed including the delay in admission of cases, lack of bidders, and disparity in valuation, say bankers. In a workshop organised by Insolvency and Bankruptcy Board of India (IBBI) on 'Committee of Creditors - An Institution of Public Trust', these issues were highlighted.

Padmaja Chunduru, MD & CEO, Indian Bank raised concerns over delays in admission of cases, the minimum default amount of Rs 1