Stressed companies are like melting ice cubes, lenders must act fast: Dinkar Venkatasubramanian

Dinkar Venkatasubramanian, president-elect Insol India, an association of insolvency, turnaround and restructuring professionals; image courtesy: company

Synopsis
Seven years and several iterations since its launch, the IBC code is set for a major overhaul. While the idea is to make the resolution process seamless, the incoming president of the insolvency professionals’ body, Insol India, underlines that the pace at which lenders revive the assets of a stressed company will determine its ultimate value.

The Insolvency and Bankruptcy Code (IBC) has been in operation since 2016. It has been instrumental in changing the nature of India’s insolvency framework from a ‘debtor-in-possession’ regime to a ‘creditor-in-control’ model. Around seven years since its introduction, the IBC is expected to see another round of realignment when it comes to the debtor-creditor equation. To be sure, the code has undergone several iterations through amendments and