{"id":128226,"date":"2021-08-24T20:25:18","date_gmt":"2021-08-24T14:55:18","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=128226"},"modified":"2021-08-26T12:10:48","modified_gmt":"2021-08-26T06:40:48","slug":"india-remains-a-very-difficult-country-for-dying-companies","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-remains-a-very-difficult-country-for-dying-companies\/","title":{"rendered":"India remains a very difficult country for dying companies"},"content":{"rendered":"<p><strong>Source: <\/strong><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/epaper.livemint.com\/Home\/ShareArticle?OrgId=248e167607a&amp;imageview=0\">Live Mint<\/a><\/span><\/p>\n<p><strong>Relevance: <\/strong>Insolvency bankruptcy code and corporate failure<\/p>\n<p><strong>Synopsis: <\/strong>The failure of Insolvency bankruptcy code to achieve its intended objectives is dubbed as \u2018isomorphic mimicry\u2019 by developmental scholars.<\/p>\n<h5><strong>What is \u2018isomorphic mimicry\u2019?<\/strong><\/h5>\n<p>It is the tendency of governments to mimic (copy) other governments&#8217; successes, replicating processes, systems, and even products of the \u201cbest practice\u201d examples.<\/p>\n<h5><strong>Issues pertaining to the IBC<\/strong><\/h5>\n<p>Global investors were genuinely excited by India\u2019s 2016 insolvency law, hoping to profit from bad loans. Initial success with distressed steel plants raised hopes that the savings-starved economy would extricate valuable capital from failed ventures.<\/p>\n<p>But now, IBC is challenged by<\/p>\n<ul>\n<li><strong>Low recovery rate (90% haircuts)<\/strong><\/li>\n<li><strong>Lack of bailout funds<\/strong><\/li>\n<li><strong>Long delays in admitting cases by tribunals<\/strong><\/li>\n<li><strong>Shortage of judges<\/strong>: Across the country, 27 tribunals are being run by 29 judges, at least 25 short of what\u2019s required. Many have no experience in financial matters. Insolvency courts also adjudicate unrelated matters under the Companies Act, overwhelming an already strained system. Delays abound, not just in approving a sale or liquidation in 270 days as the law proposed originally (it was later increased to 330 days), but even in admitting cases.<\/li>\n<\/ul>\n<h5><strong>Way forward<\/strong><\/h5>\n<p>It\u2019s still not too late to fix the bankruptcy regime. Maybe it will happen only once the state is no longer a dominant player in the lending market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: Live Mint Relevance: Insolvency bankruptcy code and corporate failure Synopsis: The failure of Insolvency bankruptcy code to achieve its intended objectives is dubbed as \u2018isomorphic mimicry\u2019 by developmental scholars. What is \u2018isomorphic mimicry\u2019? It is the tendency of governments to mimic (copy) other governments&#8217; successes, replicating processes, systems, and even products of the \u201cbest&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/india-remains-a-very-difficult-country-for-dying-companies\/\">Continue reading <span class=\"screen-reader-text\">India remains a very difficult country for dying companies<\/span><\/a><\/p>\n","protected":false},"author":10316,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[8671,216,3605,8612],"class_list":["post-128226","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-changes-in-industrial-policy","tag-gs-paper-3","tag-ibc","tag-insolvency","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704647878},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/128226","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10316"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=128226"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/128226\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=128226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=128226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=128226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}