Summary of "INTERNATIONAL CONCLAVE 2026"

International Conclave 2026: Overview

The International Conclave 2026 focused extensively on the evolution, impact, and future roadmap of India’s Insolvency and Bankruptcy Code (IBC) over the past decade. The event highlighted the IBC’s successes, challenges, and global positioning. It featured detailed discussions by policymakers, regulators, judiciary members, insolvency professionals, and international experts, covering multiple facets such as insolvency resolution, financial sector reforms, asset tracing, cross-border insolvency, and distress financing.

Key Highlights and Discussions

1. IBC’s Performance and Impact

Recovery and Resolution Efficiency: India’s IBC has significantly improved insolvency resolution, reducing the average resolution time to about two years, compared to 6-8 years previously. The number of resolved cases annually has more than doubled (from ~110 to over 250 cases). Recovery rates are high, with creditors realizing about 94% of the enterprise value and approximately 93.5% of admitted claims, dispelling myths of excessive haircuts.
Behavioral Changes: The code shifted the paradigm from “debtor in control” to “creditor in control,” encouraging early settlement and discipline among borrowers. Over 30,000 cases have been resolved even before formal admission.
Economic Contributions: Studies by IIM Ahmedabad and Bangalore show substantial improvements post-resolution in:
- Sales turnover (+76%)
- Market capitalization (tripled)
- Liquidity (+80%)
- Employment (+50%)
Reduction in NPAs and Bank Profits: The gross NPA ratio of scheduled commercial banks has declined to 2.05%, with net NPAs around 0.52%. Public sector banks have reported record profits in recent years, partly attributed to IBC’s effectiveness.

2. Regulatory and Legislative Reforms

Since inception, IBC has undergone six amendments and over 120 regulatory changes to address emerging challenges such as delays, low creditor recoveries, and procedural bottlenecks.
The IBC Amendment Bill 2025 (awaiting parliamentary approval) proposes critical reforms including:
- Mandatory admission/rejection timelines (14 days)
- Withdrawal of insolvency applications only with 90% Committee of Creditors (COC) approval
- Introduction of group insolvency, cross-border insolvency, and creditor-initiated insolvency processes
- Enhanced protections for homebuyers and MSMEs
The Insolvency and Bankruptcy Board of India (IBBI) has played a pivotal role in capacity building, regulation, and digital transformation, including the use of information utilities and auction platforms.

3. Role of Judiciary and NCLT

The National Company Law Tribunal (NCLT) has been instrumental in efficient case management, with 87% of cases disposed of and significant monetary value resolved (~₹19.75 lakh crore).
Judicial leadership emphasized:
- The importance of dedicated tribunals
- Frequent judicial colloquia for knowledge sharing
- The deterrent effect of IBC in improving corporate discipline
Challenges remain in maintaining timelines and increasing tribunal capacity, but the overall ecosystem is considered one of the best globally.

4. Asset Tracing, Recovery, and Enforcement

Asset tracing is fundamental to value maximization in insolvency, involving identification, protection, and recovery of assets both domestic and cross-border.
Insolvency professionals coordinate with enforcement agencies (ED, SFIO, MCA) and use forensic tools and digital analytics but face challenges such as information asymmetry, jurisdictional barriers, and uncooperative promoters.
International jurisdictions like Cayman Islands, BVI, Singapore, and Malaysia offer various legal tools such as Norwich Pharmacal orders, stop notices, banker’s trust orders, and litigation funding mechanisms to aid asset recovery.
Litigation funding and sale/assignment of claims are emerging as important enablers for pursuing complex recovery actions.

5. Cross-Border Insolvency and UNCITRAL Model Law

India is in the process of adopting a cross-border insolvency framework based on the UNCITRAL Model Law, learning from countries like Malaysia, Australia, and the UK.
The Model Law facilitates:
- Recognition of foreign insolvency proceedings
- Cooperation between courts
- Coordination of concurrent proceedings while respecting national sovereignty
Malaysia’s recent adoption includes protections for local creditors and requires foreign representatives to guarantee local creditor interests before transferring assets abroad.
Australia’s experience highlights the importance of judicial familiarity, procedural rules, and international cooperation.
The Indian legal community emphasizes the need for substantive provisions in the IBC (not just procedural rules) to empower courts for recognition, interim relief, and cooperation.

6. Distress Financing, Acquisitions, and Special Situations

The market for financing distressed assets in India has matured with participation from domestic and international banks, private credit funds, wealth investors, and Asset Reconstruction Companies (ARCs).
Distress financing structures range from straight debt, hybrid instruments, convertible equity to Debtor-in-Possession (DIP) financing, often involving consortiums of strategic and financial investors.
Sectoral focus includes steel, power, infrastructure, financial services, and increasingly real estate and retail sectors.
Real estate distress financing is complex due to multiple stakeholders (homebuyers, regulators, operational creditors), requiring aligned interests, strong due diligence, and execution focus.
International experiences (US, Southeast Asia) show the importance of speed, certainty, and predictable legal frameworks for successful distressed investing.
Challenges include regulatory delays, trust deficit, and the need for better access to information to reduce the cost of capital and enhance investor confidence.

7. Out-of-Court Workouts and Prepackaged Insolvency

Globally, out-of-court workouts and prepackaged insolvency processes are used as first-resort tools before formal insolvency to preserve value and reduce business disruption.
India has introduced prepack insolvency for MSMEs, but uptake remains low due to awareness and risk aversion by lenders.
International jurisdictions (UK, US) have evolved such frameworks over decades, balancing speed, flexibility, and creditor protections.
Key success factors include early action by debtors, professional management, availability of liquidity, and trust among stakeholders.
Operational creditors’ rights and protections are critical and handled differently across jurisdictions; India’s prepack regime notably protects operational creditors by prohibiting haircuts without market testing.

Overall Conclusions and Way Forward

The IBC has transformed India’s insolvency ecosystem, improving recovery rates, reducing NPAs, and fostering corporate discipline, with strong global recognition.
Continuous legislative and regulatory reforms are essential to address remaining challenges like delays, capacity constraints, and expanding insolvency frameworks (group, cross-border, personal insolvency).
Asset tracing and recovery require enhanced statutory tools, technology adoption, capacity building, and international cooperation.
Cross-border insolvency adoption under the UNCITRAL Model Law will integrate India with global standards, enhancing creditor confidence and investment flows.
Distress financing and special situations markets are growing but require better information access, legal certainty, and innovative financing structures to support turnaround and economic growth.
Out-of-court and prepack mechanisms need greater awareness, regulatory support, and institutional maturity to become mainstream tools for resolution.

Presenters and Contributors

Justice Ramalingam Sudhakar – President, National Company Law Tribunal (NCLT)
Shri M. Nagaraju – Secretary, Department of Financial Services, Ministry of Finance
Mr. Ravi Mittal – Chairperson, Insolvency and Bankruptcy Board of India (IBBI)
Mr. Janti Prasad – Whole-time Member, IBBI
Mr. Abizar Dwanji – Financial Sector Professional
Ms. Antonia – International Insolvency Expert (virtual)
Mr. Bam Wakil – Industry Expert
Ms. Puja Mahajan – President, Insol India & Insolvency Professional
Mr. Sep Ger – Whole-time Member, IBBI
Mr. James Noble – Partner, Litigation & Restructuring, Cayman Islands
Mr. Mark Fort – Partner, Litigation & Restructuring, BVI
Mr. Keith Han – Partner, Litigation, Singapore
Mr. Shuklasar – Insolvency Expert
Mr. Rob – UK Insolvency Expert
Mr. Jamie – US Insolvency Expert
Mr. Ashoke – Southeast Asia Lawyer
Mr. Steven – US Restructuring Expert
Mr. Apurv – Indian Market Specialist
Mr. Kader – Real Estate Specialist
Ms. Sharon Chong – Malaysian Cross-border Insolvency Expert
Ms. Samira Musayva – Legal Officer, UNCITRAL
Professor Rebecca Perry – Nottingham Law School
Mr. Scott Atkins – Global Head of Restructuring, Norton Rose Fulbright
Mr. Sumant Batra – President, Insolvency Law Academy, India
Mr. Rajesh Kumar – IBBI

This conclave underscored India’s journey in insolvency reforms and the collective responsibility among policymakers, judiciary, professionals, and industry to further strengthen and globalize the insolvency ecosystem for sustainable economic growth.