Friday, March 12, 2010

Speed of insolvency proceedings

Snails move faster than insolvency proceedings in India. Having witnessed with horror the tortuous and labyrinthine course of BIFR hearings in our country, I was amazed to come across the following statement in the examiner's report on Lehman Brothers:

"Lehman could be found to have been insolvent AS FAR BACK AS Sept 2, 2008 even though it did not file for bankruptcy until Sept 15." A two week delay is reported as a misdemeanour !

I am tempted to believe that Indians and Americans live in different timeframes. According to Hindu mythology, six terrestrial months constitute a day and six earthly months constitute a night in heaven / hell. Perhaps one American year is equivalent to a day in India.

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