That’s what India did last November when it added a number of restrictions on who could bid for assets in a bankruptcy. But the morality was legal overkill; and that’s now evident in the farce that the insolvency of Essar Steel India Ltd. has become. But the creditors’ committee deemed both buyers to be ineligible, and went for a second round of bids. The section, which the government slipped into the bankruptcy code in November, introduced four layers of ineligibility for potential bidders. It would provide some comic relief from India’s $200 billion bad-loan problem... if New Delhi’s bankruptcy law didn’t turn the tragedy into such a farce.

Source: Mint April 20, 2018 03:56 UTC