NEW DELHI: Its role in insolvency resolution downsized by a recent Supreme Court ruling, the Noida Authority, which is struggling to recover thousands of crores from defaulting real estate companies, will request the government to amend the Insolvency and Bankruptcy Code (IBC) to bestow financial creditor status on development authorities like itself if its review petition before the SC fails, its CEO Ritu Maheshwari said.
Earlier this month, the Supreme Court ruled that the authority would have the status of an operational creditor, not a financial one, in insolvency proceedings, based on the definition of each in the IBC. A financial creditor is placed at the top in the pecking order of claimants, besides having a voice in the committee of creditors (CoC), which drives an insolvency resolution and oversees voting.
