NEW DELHI, April 10 -- The Insolvency and Bankruptcy Code (IBC) promises a fresh start for bankrupt companies that have resolved their debt problems. Yet, creditors including government agencies come after them for their past dues - a headache for the company's new investors. Recent amendments to the IBC clarify that the new investors deserve an absolutely clean slate. Mint looks at the gainers and losers.

New investors take over distressed assets when they have clarity on the viability of reviving them. That requires certainty about claims that various parties have on the asset.

Once the claims have been filed and admitted, the adjudicating authority, the National Company Law Tribunal (NCLT), approves a revival plan and the new investo...