For a 90% haircut, try India’s bankruptcy salon4 min read . Updated: 05 Jul 2021, 05:42 AM IST
Urgent change is needed (again) to a five-year-old insolvency regime that stiffs creditors with low recoveries.
Five years ago, India came up with a legal answer to its perennial economic challenge of rescuing the money stuck in zombie firms. Unlike China, which has the cushion of high savings, India’s inefficient use of limited domestic capital has meant a chronic inability to put its swelling ranks of youth to work. After toying with the idea for more than a decade, the solution New Delhi hit upon was a modern bankruptcy code.
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