India has revised a previous change that was made in
November 2017 to its Insolvency and Bankruptcy Code (IBC) that
barred errant promoters of defaulting companies from buying
back assets sold under the bankruptcy process. Loan defaulters
can now bid in buy-backs after paying off bad debts and
Last year was an active year for the insolvency and
bankruptcy area in India as changes were made to the Banking
Regulation (Amendment) Ordinance 2017, including to give the
Reserve Bank of India (RBI) authorisation to issue directions
to banks to initiate insolvency resolution processes for
defaults and stressed assets. The RBI has targeted 12 accounts
that account for 25% of gross non-performing assets (NPAs) and
a second list of about 40 defaulting companies for banks to
begin the insolvency process under the IBC.
The ordinance put into place a time cap mechanism to resolve
cases of unpaid debts...