New Delhi: The Insolvency and Bankruptcy Board of India (IBBI) has said that its latest rules on corporate defense allow administrators and lenders of insolvent firms to invite bids for personal assets of the aggrieved company, if they are to be considered as the entity as a whole. No rescue plan has been found for first time.
The idea is to maximize the value in the resolution, IBBI said in a statement. Amendment to the Regulations on ‘Insolvency Resolution Procedure for Corporate Individuals’ issued last Friday, enabling resolution professional and committee of creditors to issue request for second time resolution plan for sale of one or more assets of corporate debtor in cases where makes. The resolution plan for the corporate debtor as a whole has been received.
“This enables the sale of one or more assets of the debtor company for a resolution plan involving one or more successful resolution applicants who submit a resolution plan for such assets,” IBBI said in a statement. and provide fair treatment to the remaining assets.”
IBBI said the rules also help in improving the value realized in the resolution plan.
The amendment provides for the formulation of a strategy for marketing the assets of the insolvent business to a broad and target audience of potential bidders.
This enables the asset to remain in the market longer as the invitation for expression of interest has been extended to 60 days from the date of insolvency commencement. IBBI said changes have also been introduced to provide more relevant information to individuals expressing interest.
With the aim of reducing process delays and increasing the efficiency of available time, the amendment enables creditors to examine whether they wish to explore the option of ‘compromise or arrangement’ – a restructuring option under the Companies Act – and Look for the same from the Tribunal while applying for the liquidation order.
If creditors decide to explore an option outside the ‘compromise or arrangement’ – the Insolvency and Bankruptcy Code (IBC) – they must explore that option during the period when the order of liquidation under the IBC is received from the tribunal. waiting waiting.
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