To recover their dues, creditors of an insolvent company will have more options now.
They might be able to tap into an asset size bigger than
what prevails under the current
mechanism.
With the regulator the insolvency Bankruptcy Board of
India, notifying the rules recently, Indian creditors lay claim to the foreign assets of an insolvent company in addition to its assets. And, foreign creditors will be able to claim all assets of the company.
Customers who have made
advanced payments to the company can claim assets in proportion to their payments but they would not be given priority.
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