You are here: Home » Opinion » Columns
Earnings under pressure
icon-arrow-left
Risky moves in Jammu and Kashmir
Business Standard

Is IBC unfair to operational creditors?

Any decision to change the system should be based on developed theory and firm evidence

Topics
Insolvency and Bankruptcy Code | IBC

Anthony Casey & Bhargavi Zaveri 



Anthony Casey & Bhargavi Zaveri

A key feature of the (IBC), 2016, is that operational creditors — which include employees, suppliers, and consumers — do not participate in the voting process that determines a debtor corporation’s future. The explicit exclusion of this group of creditors from bankruptcy negotiations is unique to Indian law, and has led to concerns about their equal and equitable treatment. These concerns have spawned legislative and regulatory amendments and ad-hoc judicial pronouncements seeking to protect operational creditors. Many worry that without a say in the resolution process, these creditors will get a raw deal. But theory and evidence do not support this.

TO READ THE FULL STORY, SUBSCRIBE NOW NOW AT JUST RS 249 A MONTH.

SUBSCRIBE TO INSIGHTS

What you get on Business Standard Premium?

  • icon Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • icon Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • icon Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
  • icon Pick your 5 favourite companies, get a daily email with all news updates on them.
  • icon 26 years of website archives.
  • icon Preferential invites to Business Standard events.

OR


Subscribe to Business Standard Premium

Exclusive Stories, Curated Newsletters, 26 years of Archives, E-paper, and more!

Insightful news, sharp views, newsletters, e-paper, and more! Unlock incisive commentary only on Business Standard.

Download the Business Standard App for latest Business News and Market News .

First Published: Wed, August 07 2019. 00:31 IST

RECOMMENDED FOR YOU

.