Delays in resolving cases under IBC are a major challenge for lenders
- There is also a risk of a decrease in the value of assets due to the length of the settlement process Lenders are being forced to spend more and more money in settling cases under the Insolvency and Bankruptcy Code (IBC). Few investors seem to be eager to buy assets under stress amid the economic downturn caused by the Corona epidemic and investors who come in want to buy assets at huge discounts. The decline in private consumption caused by Corona has made recovery challenging for many companies. Corona has further depreciated the value of assets at a time when there is a lot of time spent in disposing of assets under stress due to issues such as loss in legal proceedings and unusual delays in resolving cases. Due to various adversities, the recovery rate of financial lenders in the December 2011 quarter was 15.50 per cent lower than the number of cases filed. The overall recovery figure, which stood at 7.50 per cent in the September 2018 quarter, also declined to 8.10 per cent i...