Need for collaboration among stakeholders for effective restructuring: RBI Dy Governor
The Insolvency and Bankruptcy Board of India (IBBI), in collaboration with INSOL India, hosted the International Conclave 2024, themed “Insolvency Resolution: Evolution & Global Perspective.” The event brought together eminent professionals and stakeholders from across the globe to discuss innovations, challenges, revival strategies and global perspectives in insolvency resolution.
Transformative Insights from Keynote Speakers
The Chief Guest, M Rajeshwar Rao, Deputy Governor of the Reserve Bank of India, highlighted the transformative journey of the Insolvency and Bankruptcy Code (IBC) since its inception in 2016. He praised its critical role in resolving debts exceeding ₹10 lakh crore before formal proceedings and emphasized the need for collaboration among stakeholders for effective restructuring and revival strategies.
Rajnish Kumar, former Chairman of the State Bank of India, hailed IBC as a landmark reform that redefined debtor-creditor relationships and contributed to the banking sector’s health. He underscored the importance of prioritizing value maximization over recovery rates.
Ravi Mital, Chairperson of IBBI, emphasized the IBC’s pivotal role in dismantling the “defaulters’ paradise” and driving significant behavioral changes in the insolvency ecosystem. He also addressed challenges such as timely value preservation and outlined regulatory reforms to enhance the resolution process and revival of stressed companies.
Global Collaboration and Best Practices
Dr. Sonali Abeyratne, Technical Director of INSOL International, underscored the importance of international collaboration in sharing best practices. She outlined INSOL International’s engagement with INSOL India to strengthen the global insolvency resolution framework.
Panel Discussions and Key Themes
The Conclave featured three panel discussions addressing diverse aspects of insolvency resolution:
- Restructuring and Insolvency Trends Across Jurisdictions – Distinguished speakers discussed emerging trends and developments in insolvency frameworks worldwide.
- Judgment Enforcement and Asset Recovery – Experts explored challenges in enforcing judgments, recovering assets, and managing personal guarantees.
- Institutional Creditors’ Role in Corporate Resolutions – Panelists shared insights into the impact and responsibilities of institutional creditors in resolution processes globally.
Investor and Resolution Applicant Perspectives
Two “Fire Side Chats” provided valuable perspectives from investors and resolution applicants. Discussions ranged from foreign investment in stressed assets to enhancing market mechanisms for value maximization under IBC.
