Friday, June 28, 2019

Justice, law and change

Bankruptcy is like ice cream; the more you wait, the more it melts. Starting today, Jet Airways will no longer be freely traded on stock exchanges. Shareholders aside, it’s often forgotten that the consequences for lenders are the same whether a bankruptcy arises from fraud, competition, unrealistic ambition, poor execution, flawed strategy, sectoral issues, or government policy. The concept of willful defaulter is a distinction without a difference, liquidation is the worst possible bankruptcy outcome, and flexible deadlines guarantee poor outcomes. I hope I am wrong, but Jet Airways may be India’s first liquidation that should have been a bankruptcy.

--India’s policy choices around bankruptcy represent a rupture with the past.
But there is work yet to be done- writes Manish Sabharwal >>

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