Query on Insolvency of Indian subsidiary

Research indicates that the general bias of Indian insolvency legislation had been in favour of the debtor, rather than the creditors. Despite the traditionally strong emphasis on the taking of security, the timeliness and ease of enforcement has remained uncertain.

Increasing cross-border acquisition activities by Indian corporates and the use of international debt financing for such transactions have propelled insolvency issues into the limelight. Concerns such as the enforceability of security in the various jurisdictions, limits on cross-border guarantees and funds transfer, as well as the robustness of the transaction financing structures have thus become more pertinent, and are crucial in determining recovery value and assigning ratings,