IBC provides lifeline for distressed companies: Sahoo
NEW DELHI: IBC provides lifeline for distressed companies: Sahoo – For stressed companies to save lots of them from premature death insolvency law provides a replacement lifeline, IBBI Chairman M S Sahoo said on Friday about the benefits of this code which provides for a time-bound and market-linked resolution of stressed assets.
Speaking at an occasion here, Sahoo said the IBC provides a replacement lifeline to a corporation that features value and has got to be saved from premature death.
Exemplifying his point, Sahoo said the typical lifetime of S&P 500 companies has reportedly come down from 90 years to 18 years over the last century.
There is a sort of danger to the lifetime of a business and sometimes, freedom leads to unfair battles at the market place, he noted.
As many as 190 companies are rescued till December 2019 through resolution plans and that they owed Rs 3.8 lakh crore to creditors.
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