Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

@article{171923,
        author = {Dr. K.V. Ravi Kumar and D. Sheila Rani},
        title = {NAVIGATING FINANCIAL HAIRCUTS: UNDERSTANDING THE COMPLEXITIES IN CORPORATE INSOLVENCY RESOLUTION PROCESSES},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {11},
        number = {8},
        pages = {1445-1458},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=171923},
        abstract = {In the current landscape of insolvency and bankruptcy procedures, a noteworthy strategy employed by corporate lenders is commonly referred to as "haircuts". In the realm of finance, a haircut denotes a deliberate reduction negotiated by lenders on the outstanding loan amount. This reduction typically falls within a predefined range, and it plays a pivotal role in the procedure of corporate insolvency resolution. Recent instances within the domain of insolvency have brought to light a prevalent trend where the Corporations actively pursue substantial haircuts. Unfortunately, this trend has led to a noticeable rise in non-performing debts for lenders. In response to this, the authors in this paper had endeavour not only to illuminate the intricacies of the haircut mechanism but also to put forward a set of regulatory proposals aimed at addressing these significant disparities.  Moreover, the authors have to  contribute valuable insights and recommendations concerning the intricacies of executing the haircut procedure under the Insolvency and Bankruptcy Code.  To exemplify and underscore these points, they draw upon contemporary case studies featuring prominent companies like Videocon Industries and Jet Airways. Through this paper, the authors have adopted both doctrinal and non-doctrinal methods by conducting a survey regarding the decision making of insolvency professionals in cases of haircuts through a questionnaire sent across in our country and include the received insights in further understanding of the haircut process.},
        keywords = {Insolvency and Bankruptcy, Haircuts, Corporate insolvency resolution, Non performing debts, Insolvency Professionals.},
        month = {January},
        }