The creditors can only be paid in accordance with the resolution plan that is approved by the committee of creditors. And that is the fundamental flaw,” said Sumant Batra, insolvency lawyer. “This is one of the hurdles for the promoters and it may shift the balance in favour of the non-promoter bidder,” he said. The batch of 12 companies owns ?3.5 lakh crore to the financial and operational creditors. The intent is to get somebody who can revive the company.

Source: Economic Times November 29, 2017 02:37 UTC