IBC - #SectorUpdates
The Insolvency and Bankruptcy Board of India (IBBI) has amended its regulations to allow sale of one or more assets of an entity undergoing insolvency resolution process. During the liquidation period, the Committee of Creditors (CoC) can now examine whether a compromise or an arrangement can be explored for a corporate debtor. Till June, 2022, as many as 1,703 Corporate Insolvency Resolution Processes (CIRPs) ended up in liquidation. The amendment is likely to provide better market-linked solutions for stressed companies. It will also ensure that better quality information about the insolvent company and its assets is available to the market, including prospective resolution applicants. Experts are of the opinion that the move will help to get a clearer picture about the debt of the company concerned as resolution professionals will have to actively seek claims from known creditors, based on the books of accounts.