Indian Bankruptcy Code (IBC) summed up nicely by Moneylife:
The media euphoria is about the banks as well as bond and deposit holders receiving a tidy sum of cash as settlement. But the fact is that a significant part of the settlement, amounting to Rs19,550 crore, is by way of 6.75% coupon debentures payable half-yearly. The debentures are redeemable over a 10-year period in a phased manner. The cash settlement, according to news reports, is only the balance sum, which conveniently uses about Rs3500 crore already in DHFL.
The same happened in the case of Ruchi Soya. The new owner immediately got funding from State Bank of India ( SBI) who was also the loan provided for Ruchi Soya.
In few year some one will write similar about Bad Bank.
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