The Ministry of Corporate Affairs is working with the Finance Ministry, RBI and Indian Banks’ Association on the conduct of the Committee of Creditors (CoC) as part of the insolvency resolution process, a senior official said on Friday.
Corporate Affairs Secretary Rajesh Verma said, “We are working with IBA, RBI and Department of Financial Services on the important issue of governance of the CoC.
The CoC is important in deciding the resolution plan under the Insolvency and Bankruptcy Code (IBC).
The conduct of the CoC assumes significance amid the recent incidents of creditors drastically cutting their exposure under resolution plans.
He did not elaborate further.
Mr. Verma also acknowledged that the judgments held that the commercial knowledge is with the CoC as IBC provides a competitive market driven process for value discovery of the debtor.
He said erosion of a debtor’s value is a matter of concern and emphasized that “conservation of time and assets is of real essence”.
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