Anupam Goenka, Head of Underwriting at Ascertis Credit, recently participated in an interesting panel discussion titled "The Creditor Code – Enhancing Stakeholder Participation and Best Practices" at the INSOL International Mumbai Seminar. In the realm of insolvency and restructuring, the behaviour and conduct of creditors are crucial to achieving successful outcomes and this session focused on the evolving role creditors play in these processes, focusing on their impact, potential areas for growth, and the effectiveness of current codes of conduct.
Key Insights from the discussion:
🔹 Crucial Stakeholder Involvement: Creditors are primary stakeholders, and their active participation is crucial for achieving visible solutions in insolvency processes. The discussion emphasized the importance of creditor engagement in following the resolution processes laid out by the IBC.
🔹 Flexibility for Creditors: Panelists representing investors and lenders, discussed if there should be a binding / prescriptive Creditor Code on the basis of which lenders / investors need to act. While a detailed and prescriptive code may hamper investors’ ability to take actions they deem necessary to protect their investment, a framework that guides the engagement between creditors and provides means to work out an appropriate resolution process would be useful.
Anupam Goenka noted, "Private credit as an asset class is expanding rapidly, across performing credit, special situations and distressed credit. Ascertis Credit focuses on performing credit and considers IBC to be an important tool available to credit funds. Such solutions include bespoke capital capital to established businesses interested in growth and inorganic expansion through acquiring stressed assets through a transparent resolution process. The structuring focuses on the acquirer’s business, experience and track record to turn around such asset, and the overall recourse IBC provides to protect the fund’s interests.”
As the private credit landscape continues to evolve, strategic positioning and responsible lending practices are key to effectively navigating insolvency and restructuring scenarios.
Please refer to the Linkedin post for more details.
