Effectiveness of the Resolution Process: Firm Outcomes in the Post-IBC Period

Abstract

The Insolvency and Bankruptcy Code (IBC) was enacted in 2016 to improve the efficiency of insolvency and bankruptcy proceedings of firms in India. While the act facilitated a consolidation of the legal framework and hastened the resolution process, it is imperative to understand the impact of the act on firms that went through the resolution process. This study examines whether the resolutions undertaken post the implementation of the act have resulted in better outcomes for firms coming out of the process.

The key objectives of the study are as follows:

1. The study measures the effectiveness of the resolution process by analysing the performance of the resolved companies in the post-resolution period compared to the performance of performing firms during the same period.

2. Calculate the recovery rate for cases resolved under IBC

Keywords: Insolvency, bankruptcy, IBC 2016, resolution, recovery rate