MORE THAN 60 LOAN-STRESSED ACCOUNTS LIKELY TO COME IN FOR RESOLUTION UNDER THE INSOLVENCY AND BANKRUPTCY CODE
As the Reserve Bank of India’s deadline of August 27th looms closer, as many as 60 loan-stressed accounts stare at insolvency proceedings. More than 3 lakh crore worth of loans of 70-80 companies is likely to come in for resolution under Insolvency and Bankruptcy code (IBC).
The Reserve Bank of India issued a circular on February 12th for reconstruction of bad loan accounts which remain unresolved for 180 days, to be transferred to National Company Law Tribunal (NCLT).
After the transfer of fresh cases to NCLT, those accounts bearing unpaid loan for more than 2,000 crores will undergo resolution under the Insolvency and Bankruptcy Code. While, for the other accounts with unpaid debt below 2,000 crores, RBI in a due course will announce a separate resolution framework.