October 30, 2017

Can a company buy its own company after the banks have written off its unpaid loans? Another scam?

Bankruptcy rule faces Essar test

A bid by the Ruias to buy back their own asset - Hazira-based Essar Steel - in a bankruptcy process has raised serious questions of propriety over the entire exercise.

Though legally allowed under the bankruptcy code, bankers are worried this could set a precedence for promoters to buy back their assets in a roundabout way at deep discounts and automatically wipe out their debts. Finance ministry officials are also worried about the potential political fall-out of the move.

Read more at https://www.telegraphindia.com/business/bankruptcy-rule-faces-essar-test-181906

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