There can be amendments to IBC, banks to evaluate options

There can be amendments to IBC, banks to evaluate options

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State Bank of India Chairman Rajnish Kumar on Wednesday indicated that there may be a need to amend the Insolvency and Bankruptcy Code after the ruling of the NCLAT in the Essar Steel case.

“Let us see what works out. There have been in the past, and if required, there can be more amendments to the IBC. Let us be patient,” he told reporters on the sidelines of launching a book on HDFC Bank.

The National Company Law Appellate Tribunal earlier this month approved the ₹42,000-crore bid placed by ArcelorMittal to take over the insolvent Essar Steel. But the lenders will have to take a larger haircut as the tribunal has allowed a bigger share of the proceeds to operational creditors than what was envisaged by the Committee of Creditors (CoC).

Meanwhile, speaking at the event, Kumar said that the resolution of Jet Airways has now passed to the Resolution Professional.

Source- Business Line.