Poor asset valuation, economic climate, NCLT delays see IBC losing favour

Less than 200 cases have been admitted to the National Company Law Tribunal till June after the suspension was lifted on March 24, revealed the Insolvency and Bankruptcy Board of India

IBC, insolvency, bankruptcy, NCLT, company, firms
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Lenders have also resorted to the Reserve Bank of India’s (RBI's) one-time restructuring available till June to address accounts affected by Covid and avoided going to the IBC.

Ruchika Chitravanshi New Delhi
Poor asset valuation and economic climate, along with suspension of insolvency initiation against Covid-related default, are some of the reasons why lenders are not opting for resolution under the Insolvency and Bankruptcy Code (IBC), observed industry experts.
 
Less than 200 cases have been admitted to the National Company Law Tribunal till June after the suspension was lifted on March 24, revealed the Insolvency and Bankruptcy Board of India (IBBI).
 
“As the IBC resolution process matures, lenders have developed an understanding about the process and can assess the prospect of an asset resolution through IBC more closely,” said Kumar

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First Published: Aug 04 2021 | 6:04 AM IST

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