Synopsis: IBC is a landmark reform and its efficiency can be further enhanced by adopting incentive structure. Introduction Despite value erosion at disbursal due to poor credit discipline, the IBC has yielded impressive recoveries so far. However, the Code has also been criticized on several other grounds, many of which are questionable. Why IBC ‘s… Continue reading Let’s rework incentive structures to boost IBC recovery
Tag: Insolvency
India remains a very difficult country for dying companies
Source: Live Mint Relevance: Insolvency bankruptcy code and corporate failure Synopsis: The failure of Insolvency bankruptcy code to achieve its intended objectives is dubbed as ‘isomorphic mimicry’ by developmental scholars. What is ‘isomorphic mimicry’? It is the tendency of governments to mimic (copy) other governments’ successes, replicating processes, systems, and even products of the “best… Continue reading India remains a very difficult country for dying companies
Insolvency: Bill on pre-pack resolution of MSMEs tabled
Source: Indian Express What is the News? The Finance and Corporate Affairs Minister has introduced the Insolvency and Bankruptcy Code (Amendment Bill), 2021 in the Lok Sabha. Insolvency and Bankruptcy Code (Amendment Bill),2021: Key Provisions of the Bill: Pre-Pack Insolvency Resolution Process(PIRP): The bill introduces pre-packs as an insolvency resolution mechanism for micro, small and… Continue reading Insolvency: Bill on pre-pack resolution of MSMEs tabled
