India’s one year old insolvency regime has seen around 2,400 applications so far. Out of these, a majority have been filed by operational creditors — such as vendors, suppliers and employees — who can potentially force the company into liquidation for a default of as low as Rs 1 lakh.
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So do operational creditors wield disproportionate power by using the Insolvency Code as a recovery tool?
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And how does that fit into the objective of the Code of maximising asset of distressed companies?
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