 "Lenders may go slow on referring SMEs to NCLT")
Lenders plan to go slow on referring stressed small and medium enterprises to the National Company Law Tribunal (NCLT) for resolution under the Insolvency and Bankruptcy Code (IBC), with the chances of recovery of their dues through this process being “slim”.
According to a banker, the process of sending SMEs to the NCLT is delaying their revival, apart from banks losing a significant portion of the loans. There are several cases where the units awaiting debt resolution laid off workers.
The banker said that in the case of Vizag-based Synergies-Dooray Automotive, the first case to get a resolution plan under
