How can General Counsels (GCs) help manage stressed assets has been saved
How can General Counsels (GCs) help manage stressed assets
Insights and learnings
The GC’s role in debt and stressed asset management is still evolving in India. Until a decade ago, most GCs interfaced with specialist law firms that worked on stressed assets and other critical transactions. However, now that is changing as GCs are taking an active role in debt management and resolution (through the Insolvency and Bankruptcy Code (IBC) and active involvement in deals).
One reason for the non-recovery of debt is the reliance on self-disclosures at the time of funds disbursal. This makes it challenging to ascertain the debtor’s true wealth/antecedents. However, with increased scrutiny on balance sheets and lending practices, the following checklist will help GCs ascertain a deal partner or prospective debtor.
- Analysis of corporate records
- Reverse directorship checks
- Multi-level corporate research
- Due diligence to identify disputed assets, including document review, to ascertain asset ownership
- Multi-level forensic review of financials
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