How bankruptcy code will save lenders
A key design focus in the proposed code is speed of resolution. Delay is disincentivized at various stages
Creditors to Kingfisher Airlines (KFA) suffered a setback when there were no bids above the reserve price they had set for the Kingfisher House auction. This only reflects the failures of the bankruptcy process and banking regulation in India, which yield low recoveries with huge delays. How will the proposed bankruptcy reforms in the Insolvency and Bankruptcy Code (IBC) help improve the situation?