Role of Formal Restructuring in Post-Bankruptcy Performance of Companies

Author:

Kumar Santosh1,S. Parameswaran1

Affiliation:

1. Christ University, India

Abstract

The resolution of distressed assets / NPAs is among the greatest challenges faced by banks in India. Corporate restructuring is a popular method of revival of distressed companies wherein changes are proposed across financial, operational & portfolio & managerial restructuring . This chapter delves into the intricate landscape of court driven corporate restructuring actions and post-bankruptcy performance, particularly within the context of India's dynamic market. Leveraging empirical evidence, the chapter explores the effects of restructuring actions on post-bankruptcy performance. This is also in the background of emerging use of AI tools and technologies in corporate distress resolution. By examining the actual performance data of companies undergoing insolvency resolution process (CIRP) under IBC in India, the chapter offers valuable insights into the efficacy of different restructuring actions and their implications for post-bankruptcy performance. This chapter provides an important contribution in understanding the complexities and effectiveness of bankruptcy resolution processes.

Publisher

IGI Global

Reference41 articles.

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5. BrisA.WelchI.ZhuN. (2006). The Costs of Bankruptcy. Liquidation Versus.

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