Recent CoC decisions raise hopes for the return of errant promoters

Two recent CoC decisions give hope to those who were pushed out of their company's management due to IBC provisions

The commercial decision of banks and lenders, which are collectively termed committee of creditors (CoC) under the Insolvency and Bankruptcy Code (IBC), has always been a bone of contention for corporate debtors and resolution applicants, as well as adjudicating authorities. Two such decisions taken by banks over the past few months, however, could be a glimmer of hope for errant promoters, experts said.

In the case of debt-laden Sterling Biotech, the CoC — led by Andhra Bank — had accepted a debt-repayment plan submitted by a person claiming to be related to the promoters, Chetan Sandesara and Nitin Sandesara. Andhra Bank,