Ep 80: Going Bankrupt in India

Firms are awesome. So is creative destruction. In a well-functioning market, firms die, new firms are born, there is rebirth and renewal.

For this to play out smoothly, there has to be a good bankruptcy process, so that resources & people are not tied up in unproductive zombie firms.

Welcome to Episode 80 of Everything is Everything, a weekly podcast hosted by Amit Varma & Ajay Shah.

In this episode, Ajay lays out a masterclass on a) how to think about bankruptcy; & b) how bankruptcy happens in practice in India.

TABLE OF CONTENTS: 00:00 Packaging 00:13 Intro: We Love Firms! 00:32 Chapter 1: Creative Destruction 06:27 Chapter 2: What is a Firm? 10:48 Chapter 3: Don’t Be Sentimental 17:59 Chapter 4: Intangible and Tangible Capital 23:47 Chapter 5: The Committee of Creditors 27:18 Chapter 6: What is the Endgame? 31:50 Chapter 7: What is an Ideal Bankruptcy Code? 34:24 Chapter 8: The History of Bankruptcy Law 39:34 Chapter 9: Our Bankruptcy Code in the Real World 46:09 Chapter 10: What Happens to the Promoter? 50:04 Chapter 11: The Role of the Courts 51:12 Chapter 12: A New Regulator 53:57 Chapter 13: The Indian Non-Rule of Law 55:36 Chapter 14: A Useful Framework 1:08:10 Chapter 15: Recommendations

For magnificent, detailed, juicy show notes, click here.