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Alternate management can takeover stressed units under IBC: Minister

IANS | New Delhi |

Union Steel Minister Chaudhary Birender Singh has said that government’s new Insolvency and Bankruptcy Code provides possibility of takeover of financially stressed units by alternate efficient management.

According to a statement released by the Steel Ministry on Saturday, he made these comments at the global forum on the excess steel capacity held at Berlin on November 30.

“Government policies do not provide any financial support for setting up of new steel capacities. Steel companies have to sustain by being competitive and having a disciplined approach towards loan management,” he said.

“Policy approach of the government for exit of financially stressed units ensures transparency in the process with the possibility of takeover by alternate efficient management under the new bankruptcy law.”