Promoters of stressed companies may challenge IBC tweak in court

Essar group, Bhushan Steel and JSW group likely to be impacted by changes

Promoters of the 12 companies that have been referred to the insolvency court will not be able to bid for their companies as the loan accounts have been classified as non-performing assets for over a year, according to the ordinance amending the Insolvency and Bankruptcy Code (IBC). 

Prior to the ordinance, the IBC did not specifically disallow these promoters from bidding for their companies. 

This move will specifically impact the Ruias of the Essar group, Singal brothers of Bhushan Steel and Bhushan Power & Steel, who were interested in bidding for their firms. Jaiprakash Associates, which had tied up with