Both debtors & creditors will be wary of using IBC in short term: M S Sahoo

As the banking system gears up to support businesses in face of defaults due to Covid 19, resolution of stressed assets could be the next big task for system, says M S Sahoo

M S Sahoo, Insolvency and Bankruptcy Board of India (IBBI), in an email interview with Namrata Acharya, says debtors and creditors should think of solutions outside Insolvency and Banking Code (IBC), and explains why in the days ahead, liquidation will be rare, as the objective of the code is to rescue companies in distress. Edited Excerpts:

What, according to you, will be the long and short-term impact of Covid-19 on the resolution of stressed assets through IBC?

Covid-19 is an external variable. The lockdown and other measures, government and citizens take to address Covid-19 are also external variables. An otherwise well