 "Illustration by ajay mohanty")
The main focus of the Indian bankruptcy reform has been on the sell side: On creating conditions where lenders eject shareholders and put a firm up for sale. We need to also think about who will show up to buy. In the main, there are two kinds of buyers: Large firms in the same industry, and private equity funds. In the first few years, there will be three problems: Old defaults, limited pool of buyers, and skepticism about the bankruptcy reform. This will give low prices, which is good for buyers and bad for lenders.
In the past, shareholders in India
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