What do amendments to IBC mean to promoters?

THE HINDU

Last week, India amended the Insolvency and Bankruptcy Code (IBC) 2016 through an ordinance that received the President’s nod. Here’s a lowdown:

What is bankruptcy? What is the IBC’s intent?

A company is bankrupt if it is unable to repay debts to its creditors (banks, suppliers etc). The inability to repay debts by some Indian firms has resulted in a huge pile of non-performing assets for the banking system.

The Indian government had introduced the IBC as a method to tackle the issue. Under the Code, a resolution has to be found for the indebted company within 270 days. Otherwise, a liquidator is appointed. The company can also opt for voluntary liquidation by a special resolution in a general meeting...

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