The pressing need to recode the IBC

MUMBAI: There was a palpable sense of relief across corporate India when the Supreme Court gave its stamp of approval to ArcerlorMittal’s takeover of the troubled Essar Steel under the debt resolution process of the Insolvency and Bankruptcy Code. {{^adFree}} {{/adFree}} Deep-pocketed powerful corporates in India have managed to indefinitely delay the corporate insolvency resolution process, and evade repercussions, by continuously putting the IBC to test in the court of law. “Government has so far played a proactive role in de-cluttering any ambiguities," says Sanjeev Krishan, partner and deals leader, PwC Essar Steel Ltd’s facility near Pune The mindset change To be sure, IBC has been able to do the unthinkable—put Indian corporates on tenterhooks. {{^adFree}} {{/adFree}} IBC has indeed set alarm bells ringing with almost every debt-stricken company trying its hand at debt restructuring or putting up distressed assets on sale. {{^adFree}} {{/adFree}} He goes on to explain: “As insolvency cases unraveled, investors increasingly believed that corporate insolvency resolution process is not ready for primetime.