The objective of the law is to rescue viable companies and close down unviable ones, he said. He added that operational creditors should also get money and not just the financial creditors in a resolution process. So when there is nothing to really recover, when the liquidation value is almost zero, you will have to take a haircut,” he said. According to him, it also needs to be seen how much one gets in comparison to his claim and in comparison to the liquidation value. Anything above liquidation value is bonus and that has come because of the IBC,” he said.

Source: The Telegraph May 05, 2019 09:22 UTC