Distressed India Lures Private Equity

India's back in fashion for private-equity players: this time those looking for distressed assets. A surge in bad loans to once-thriving and now defunct companies such as Kingfisher Airlines means there are plenty of turnaround plays to pick from. Crucially for investors, India's in the process of shaking up its myriad bankruptcy regulations, meaning the time it takes to get troubled businesses into fresh hands may soon be shortened.

The government is hoping to pass a bankruptcy bill by the end of the current legislative session ending in mid-May. That could allow a company to be wound up in as little as 90 days. Under the existing framework, based on rules that in many cases date from the early 1900s, wind-up petitions can drag on for 15 years.