The insolvency law provides a new lifeline for stressed companies to save them from premature death, IBBI Chairman M S Sahoo said on Friday.
The Insolvency and Bankruptcy Code (IBC) provides for a time-bound and market-linked resolution of stressed assets.
Speaking at an event here, Sahoo said the IBC provides a new lifeline to a company which has a value and has to be saved from premature death.
Exemplifying his point, Sahoo said the average life of S&P 500 companies has reportedly come down from 90 years to 18 years over the last century.
There is a kind of danger to the life of a business and at times, freedom results in unfair battles at market place, he noted.
As many as 190 companies have been rescued till December 2019 through resolution plans and they owed Rs 3.8 lakh crore to creditors.
The Insolvency and Bankruptcy Board of India (IBBI) is a key institution in the insolvency ecosystem.
Source: The Economics Times