Supreme Court: Lenders Exercising Pervasive Influence Over Corporate Debtor's Policies Can Be Classified as Related Parties Under IBC
The Supreme Court has held that lenders and debenture holders exercising pervasive influence over a corporate debtor's policy-making may be classified as related parties under the IBC and excluded from the Committee of Creditors. The ruling clarifies the scope of creditor influence under the related-party provisions of the Code.