Photo: Ramesh Pathania/MintMumbai: The broad sweep of India’s amended Insolvency and Bankruptcy Code (IBC) may shut out several global private equity (PE) funds who have tied up at least $10 billion to invest in Indian non-performing assets, legal experts said. The changes to the Insolvency and Bankruptcy Code (IBC), aimed at preventing errant promoters from regaining control of their assets, could disqualify many global funds, particularly over a dozen active investors exclusively buying troubled assets. According to publicly available data, global PE funds have secured commitments to invest at least $10 billion in distressed assets in India. “With this, several large global PE funds that have been actively exploring opportunities in distressed assets may find themselves in a tight spot,” he said. The fund manager of a PE fund, which is an active investor in distressed assets, said he is seeking legal opinion.

Source: Mint November 29, 2017 21:56 UTC