IBBI move on part sale of stressed firms to boost recovery

The Insolvency and Bankruptcy Board of India (IBBI) has allowed administrators and creditors of stressed firms to invite bids for individual assets of the company if they don’t receive any resolution plan for the entity as a whole in the first instance.

The amended regulations will also enable a “resolution plan to include sale of one or more assets of CD (Corporate Debtor) to one or more successful resolution applicants submitting resolution plans for such assets and providing for appropriate treatment of the remaining assets.”  

“The amendment also enables a longer time for the asset in the market…,” IBBI said.

As per IBBI’s newsletter for the April-June period, as many as 1,703 Corporate Insolvency Resolution Processes (CIRPs) ended up in liquidation orders till the end of June this year.  

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