Recovery Rates: Under Insolvency and Bankruptcy Code – Likely to improve post reforms?

Today everybody is clueless about the implications of Bankruptcy Code in terms of recovery rates, time to resolve and seek settlements. However, at this point one can only take a minimal level of comfort by drawing a parallel with other economies and see on a relative basis how things paned out in those economies post the implementation of the reform.
Insolvency and Bankruptcy Code, 2016: The IBC aims to resolve insolvencies in India within definite timelines and by enhancing the credit enforcement structure. The IBC is a key long-term initiative that structurally strengthens the identification and resolution of insolvencies in India.
Internationally, bankruptcy recovery rates have improved significantly after the implementation of bankruptcy reforms, as tabulated below:Screen Shot 2018-01-28 at 7.18.11 AM.png
Time will tell how the recovery rates pan out after 5 years of implementation in India!

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