Context: For extracting maximum value under Insolvency and Bankruptcy Code (IBC), Asset Reconstruction Companies (ARCs) must be allowed to turn around distressed businesses.
Overview of Asset Reconstruction Companies in India:
Challenges to the ARCs
Way Forward: A Case for direct investment by ARCs in the equity of distressed companies:
Conclusion: If only ARCs are allowed to directly participate in IBC resolutions by infusing equity, they could emerge as the most efficient vehicle for turning around distressed Indian businesses.