Bidders object to promoters joining race for stressed assets

Bidders are also objecting to the listing of companies on the stock exchanges after they have been referred to the NCLT

Bidders for firms facing insolvency are not taking well to the fact that existing promoters of such firms are getting an opportunity to join them in the bidding process for the stressed asset. They are objecting the promoters’ involvement after defaulting to loans.

A top official of a large corporate house, making a bid for a steel company, said the process of allowing promoters to bid was faulty. “What is the use of banks’ referring a company to the National Corporate Law Tribunal, and then inviting bids from an existing promoter also? Banks could have gone for a corporate debt