New Delhi, Sep 2 (TIWN) As the Insolvency and Bankruptcy Code (IBC) has evolved over the past three and a half years, with several changes and improvements, operational creditors still largely feel sidelined or neglected when it comes to recovery of dues. Experts suggested that their issues should be looked at and necessary changes must be brought in to address them.

According to Sonam Chandwani, Managing Partner at KS Legal & Associates, with IBC’s waterfall mechanism leaving the operational creditors out, this class of creditors often takes massive haircuts on the outstanding monies owed to them.

“Presently, financial creditors are responsible to provide a fair share of claims by operational creditors who do not form a part of the Committee of Creditors. This myopic vision of the financial creditors to enhance their own realisation could bring the sustainability of operational creditors on the line, leaving a long-lasting scar on the corporate debtor itself in the long run,” she noted.

Daizy Chawla, Senior Partner with Singh & Associates, however, was of the view that although the operational creditors receive almost nothing both in case of a successful resolution and liquidation, it must be noted that the intention of IBC was not recovery. The objective of same was revival of the corporate debtor, she noted.