President approves bankruptcy code ordinance

President approves bankruptcy code ordinance
24/11/2017 , by , in News/Views

President Ram Nath Kovind on Thursday approved the ordinance for amending the bankruptcy code. The amendments will make it difficult for insolvent promoters to acquire stressed companies.

This came a day after the Cabinet referred the ordinance to the President for his assent. Top sources in the government said that the ordinance makes it difficult for promoters trying to re-acquire their stressed companies, by putting stringent guidelines for an applicant to qualify. While wilful defaulters and un-discharged insolvent are disqualified, loan defaulters with NPAs for more than a year are also not eligible. Any antecedent of corporate fraud or contravention of the companies act will also disqualify a bidder for a stressed asset.

About admin