Bankruptcy: Salvage what you can from your holdings in insolvent companies

Shareholders will get very little value for their holdings as bankruptcy laws don't favour equity investors

Many retail shareholders of companies that are undergoing bankruptcy proceedings are watching developments closely. They are hoping that the bidder who gets the National Company Law Tribunal's (NCLT) approval may revive the ailing company and their fortunes may change for the better. However, with lenders taking a massive haircut, shareholders may not be able to realise much value from their investments in these companies. 

Piyush Pandey, who has invested in Monnet Ispat & Energy, is ruing the fact that he didn't exit the stock when the price was higher. “I should have exited the company in November or December when